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3 Things You Need to Know About Workers Compensation Insurance for Small Businesses in California

Barja Asuransi | You’ve started your own small business, but you aren’t sure how to affordably insure it. Many small businesses in California are required to carry workers compensation insurance and don’t realize that there are several options available. Workers compensation can be affordable, so it’s important to know what’s required of you and what your options are so you can choose the best option for your company. Here are 3 things you need to know about workers compensation insurance for small businesses in California.

Workers Compensation Insurance for Small Businesses in California
 3 Things You Need to Know About Workers Compensation Insurance for Small Businesses in California

1) Does your company need workers compensation?

Workers compensation insurance protects businesses when employees get hurt on the job. This type of insurance is mandatory in most states, including California, so if you have workers – you’ll need to make sure you’re adequately covered by workers compensation. If you're a small business owner with up to 3 employees, workers comp can be less expensive than it would be otherwise; however, there are some caveats. 

Whether or not your company needs workers comp and how much coverage you should buy is highly dependent on how large your business is and what kind of work you do (in addition to other factors). Make sure you read through our guide so that you know what questions to ask and what questions not to ask about workers compensation insurance for small businesses in california!


2) Is it cheaper to self-insure?

Some small businesses elect not to purchase workers compensation insurance at all and instead self-insure. This strategy is especially popular among small businesses with a stable workforce and low payroll costs, but it can also be a sound option even if your workforce has high turnover or your payroll costs are relatively high. If you're thinking about going without workers comp insurance, make sure you consider all of its benefits before you do so; that way, you'll have no surprises down the road when something goes wrong. 

For example, workers comp insurance protects employees from having to pay their own medical bills if they get hurt on the job. Without workers comp coverage, an employee could end up paying thousands of dollars out of pocket for treatment—and then sue you for damages later on top of that. 

Workers comp coverage also protects your business from being sued by employees who feel they've been discriminated against or otherwise mistreated. And finally, workers comp insurance helps ensure that you stay compliant with state laws regarding worker safety and injury reporting requirements.

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3) What kind of policy should you get?

It’s important that you get workers compensation insurance when you hire an employee. However, there are different types of policies and each type has its own requirements. The three main policy types are non-owned, owned, and disability. 

Each type of policy covers different things. Non-owned policies cover injuries sustained by your employees while they're on business trips or using their own equipment and supplies outside of work hours. Owned policies cover injuries that occur while workers are using company tools or resources within normal working hours and disability policies cover wage replacement during recovery periods after an injury.

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