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Risk Management FAQ
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If an employee gets hurt or sick because of work, an employer is required by law to pay for workers' compensation benefits.
Yes, California law requires employers to have workers' compensation insurance if they have even one employee.
Generally, coverage for sole owners is optional. You would, however, need to have workers' compensation coverage for any employee you may hire, even if it's just one employee and/or temporary employment.
Usually, all employees of the company, as legally defined, including corporate officers and directors, must be included in the policy unless they are the sole owners of the firm.
You can purchase workers' compensation insurance coverage through an agent or a broker from any of the privately licensed insurers authorized to write policies in California.
Workers' compensation insurance premium rates are not regulated by the state. While the Workers' Compensation Insurance Rating Bureau (WCIRB) issues recommended rates and carriers must file their rates with the California Department of Insurance, rates can vary from carrier to carrier.
A number of factors go into determining the annual premium your insurance carrier will charge. These include your industry classification, your company's past history of work related injuries (known as your experience modification), your payroll, any special underwriting adjustments such as use of a certified health care organization, and any special group or dividend programs you may be eligible for.
You must post the "notice to employees" poster in a conspicuous place at the work site. This poster provides employees with information on your workers' compensation coverage and where to get medical care for work injuries. Specific requirements are contained in sections 3550-3553 of the California Labor Code. Failure to post this notice is a misdemeanor that can result in a civil penalty of up to $7,000 per violation. Contact your insurer to get the posting notice and the required information that must be included on it. You may also download a poster from the forms page of the DWC Web site.
Your workers' compensation claims administrator or insurance carrier.You can also download it from the forms page of the DWC Web site.
A medical provider network (MPN) is a group of health care providers set up by your insurer and approved by DWC's administrative director to treat workers injured on the job. Each MPN includes a mix of doctors specializing in work-related injuries and doctors with expertise in general areas of medicine. If your employees are covered by an MPN, their workers' compensation medical needs will be taken care of by doctors in the network unless they were eligible to pre-designate their personal doctor and did so before their injury happened.
This is a process your employees can use to tell you they want their personal physician to treat them for a work injury. Employees can pre-designate their personal doctor of medicine (M.D.) or doctor of osteopathy (D.O.) only if: you offer group health coverage; the doctor has treated them in the past and has their medical records; prior to the injury the doctor agreed to treat them for work injuries or illnesses and; prior to the injury they provided you the following in writing: (1) Notice that they want their personal doctor to treat them for a work-related injury or illness and
You should report that opinion to your workers' comp claims administrator. Tell them all the facts you know, any witnesses you may be aware of, and the people they should talk to. Follow up any phone or verbal report with a letter.
Failing to have workers' compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers. You are also resposible for paying all bills related to the injury or illness.
Yes. First, if the Division of Labor Standards Enforcement (state labor commissioner) determines that an employer is operating without workers' compensation coverage, a stop order will be issued. This order prohibits the use of employee labor until coverage is obtained, and failure to observe it is a misdemeanor punishable by imprisonment in the county jail for up to 60 days, or by a fine of up to $10,000, or both. The Division of Labor Standards Enforcement will also assess a penalty of $1,000 per employee on the payroll at the time the stop order is issued and served, up to $100,000 (Labor Code section 3722(a)). Second, if an injured worker files a workers' compensation claim that goes before the Workers' Compensation Appeals Board and a judge finds the employer had not secured insurance as required by law, when the dispute is resolved the uninsured employer may be assessed a penalty of $10,000 per employee on the payroll at the time of injury if the worker's case was found to be compensable, or $2,000 per employee on the payroll at the time of injury if the worker's case was non-compensable, up to a maximum of $100,000 [Labor Code section 3722(b)]. Third, failure to secure workers' compensation insurance is a misdemeanor punishable by imprisonment in the county jail for up to one year, or by a fine of up to ten thousand dollars ($10,000) or by both that imprisonment and fine. (Labor Code Section 3700.5)
Request a certificate of insurance from your insurance carrier or broker/agent.
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