Who is required to purchase workers' compensation insurance?

California employers are required under Labor Code Section 3700 to provide workers' compensation benefits to their employees. Failure to do so is a misdemeanor which is punishable by imprisonment and/or by fine.

However, workers' compensation coverage may not be required for some, such as sole business owners, business partners, and corporate officers. These exceptions should be reviewed on a case by case basis.

What are the benefits available to injured workers?

In California, the workers' comp benefits available to injured workers include:

• Medical Care
• Temporary Disability Benefits
• Permanent Disability Benefits
• Supplemental Job Displacement Benefits (Return to Work)
• Death Benefits

What is the experience modification factor used for?

A workers' compensation experience mod is used in the process ofexperience rating. Experience rating increases or reduces the premium in a policy period based on the employer's loss experience in prior policy periods. The experience mod is unique to each employer and is calculated by comparing the employer's loss experience in a classification to the average industry experience in the same classification.

An employer qualifies for experience rating when its manual premium exceeds a certain threshold, which is approximately $20,000 in California. This threshold is determined by the Workers Compensation Insurance Rating Bureau and changes every year.

How is my workers' compensation premium calculated?

An employer's pre-tax workers' comp premium is typically calculated as follows:

• Class payroll (per hundred) x rate for each class you may have.
• Any credits or debits, along with all state taxes and fees are applied.

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Gibson-Hadley Insurance has been proudly providing California car insurance to California for over 30 years.