Workers Compensation Insurance
In California, workers compensation insurance is not optional. If your business has even one employee, you are required by law to carry workers compensation coverage. No exceptions. Not part-time employees. Not temporary workers. Not family members you pay. If someone works for your business and receives compensation, you need workers comp.
At Ibrahim Insurance Agency in Corona, CA, we help small business owners throughout the Inland Empire get the workers compensation coverage they need to stay compliant and protect their employees.
What Does Workers Compensation Insurance Cover?
Medical Expenses
1
Workers compensation covers all reasonable and necessary medical treatment for a work-related injury or illness. This includes emergency room visits, surgeries, doctor appointments, physical therapy, prescription medications, and ongoing care.
Lost Wages
2
If an injured employee is unable to work while recovering, workers compensation pays a portion of their lost wages. In California, temporary disability benefits are typically two-thirds of the employee's average weekly wage up to a state-set maximum.
Permanent Disability
3
If a workplace injury results in a permanent disability that affects the employee's ability to work, workers compensation provides permanent disability benefits based on the severity of the impairment.
Rehabilitation
4
Even if a lawsuit against you is ultimately dismissed, the cost of defending yourself can be substantial. Umbrella insurance covers your legal defense costs even when the amount of the claim does not exceed your underlying policy limits.
Death Benefits
5
If an employee dies as a result of a work-related injury or illness, workers compensation provides death benefits to their dependents including burial expenses and ongoing financial support.
5
Frequently Asked Questions
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Yes. California law requires any business with one or more employees to carry workers compensation insurance. Failure to do so is a criminal offense with penalties of up to $100,000.
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Not automatically. However, California has very strict rules about who qualifies as an independent contractor under the ABC test. If your contractors are reclassified as employees, you could be liable for their injuries. Talk to your agent about how to protect your business.
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You are personally liable for all of their medical expenses and lost wages. You can also face fines of up to $100,000 and criminal charges. The cost of a single serious injury without coverage can bankrupt a small business.
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Yes. Ibrahim Insurance Agency works with carriers who cover businesses with prior claims. Your rate may be higher but coverage is available.
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Not in most cases. Sole proprietors without employees are generally exempt from California's workers compensation requirement. However, if you work as a subcontractor, the general contractor you work for may require you to carry your own workers comp policy.