Top Business Insurance Companies in California

Are all California businesses required to carry Workers Compensation Insurance?

All California employers must provide Workers Compensation Insurance coverage for their California employees.

Why is California Workers Comp Insurance so expensive?

California Workers Compensation Insurance is expensive largely because of claims that occur, experience modifications, fraud, and payroll amounts statewide.

Where do we get the information we post on our blog site?

The information posted on our blog site comes from trusted sources such as the Department of Insurance website, the WCIRB, the Insurance Journal, and many other reliable resources.

What is an experience modification?

An experience modification is a percentage that compares the payroll and loss history of your company to a similar-sized company within the same industry. If a company has a better than average loss record, the experience modification would be less than 100%, resulting in a credit on Workers Compensation rates. A higher than average loss record would increase rates. It is often compared to an individual’s credit score.

Why is Workers Compensation Insurance a necessary requirement?

Workers Compensation Insurance is required because it is illegal in the state of California to operate without it. Employers face penalties, fines, and serious consequences if a worker is injured without coverage. If a claim occurs without insurance, the employer is still fully liable for all costs related to the injury, which can be financially devastating.

How does your insurance carrier determine what your experience modification number is?

The experience modification number is calculated based on your payroll, premium paid, and reported losses over the last three consecutive years.

Who regulates and makes California Workers Compensation laws?

The Department of Insurance regulates California Workers Compensation laws, and the State Senate is responsible for making them.

What is a classification or a class code?

A classification or class code is used to determine the price an employer pays for Workers Compensation Insurance. Classifications are established for each industry and typically include all jobs or operations within a particular business.