CA Workers Comp Insurance Blog

As a business owner, one of your main goals and responsibilities is to provide a safe and healthy working environment for your employees. Despite all your best efforts, though, sometimes accidents still happen. When your employees get injured or sick on the job, workers comp insurance can help protect you and your business. Workers comp covers your employees’ medical costs as well as covers your legal fees should they file a lawsuit. Let’s explore the details of California workers comp coverage and what you need to know to get started!

Many California business owners may think that when their employees clock out at the end of the day, their workers comp coverage clocks out alongside them but that is not always the case.  Workers comp quotes and or policies cover the medical cost and loss of wages for your employees who have been injured while working on the job however what constitutes “on the job” can extend further than you may have thought. Let’s take a look at the rules governing how workers comp typically applies as well as the exception to those rules.

The Rules for Workers Compensation for Employees

Taking a risk can sometimes lead to the best of opportunities. When it comes to your business insurance however, risk can be a potential setback. Many companies that are considered “high risk” can have a more difficult time obtaining insurance coverage. That’s why the insurance department teamed up with the California state labor department and created the Workers Comp Joint Underwriting Associations (WCJUA) or Joint Underwriting Associations (JUA) to accept the “hard-to-place” businesses.

Is the California Workers’ Compensation industry experiencing a peak in profit? According to Conning, Inc.’s new Insurance Research study, this is true. The results from the 2015 reports show loss ratios, as a whole, were the “lowest we have seen since 1995,” as stated by Vice President of the Conning study, Jerry Theodorou (https://www.conning.com/pressrelease-detail.aspx?id=14717).

So you want to know how to collect workers compensation? It is easier than you might think. If you have been injured on the job then simply go to the doctor and tell them what happened. Simply filing a claim means that you have over a 95% chance of being approved in California. According to a recent study, about 15% of claims are revied and over 95% are approved. So, if you have been hurt, then file a claim.

Claim frequency is a huge issue in California Workers' Comp insurance. The latest reports show that LA is higher than the state average while the Bay Area regions have lower frequencies of claims. Supposedly the study takes wage level differences and industrial differences into account for the comparison. The highest claim severities are found in the Central Valley and urban coastal areas and much lower if more rural parts of California.

The Study examines geographical differences in:

The California workers comp reform made a few years ago is saving the State hundreds of thousands of dollars. Wait, scratch that, how about over 750 million every year! That's crazy, but true according to Insurance Journal this morning. Did Jerry Brown do something that worked? It looks like his Senate Bill No. 863 that was signed on Sept. 18, 2012 is helping the California Workers' Compensation system save huge money.

So, you are starting a new business, acquiring an existing business or just shopping around for Workers Compensation Insurance for your existing business. Let me start by telling you about one of the most important things you need to do your due diligence on so you can make sure you get the most competitive rates possible. One word, well three words actually. Workers Compensation Quote(s), but emphasis on the QUOTES!

So, you have just successfully opened your home health care business, congratulations! Up until this point you have put tons of energy and effort into tasks like finding a location, acquiring City and State licenses, purchasing equipment and last but definitely not least, and hiring employees.  Your employees are the bread and butter of your particular business they should be protected and treated accordingly. In the rest of this blog I will be helping to give you some insight into Workers Compensation industry providers and some tips and tricks to help you find the right fit for you.