California Workers Compensation for New Businesses.
When When it comes to getting a new business off the ground one of the most important parts of not only protecting your busines but protecting yourself is General Liability & Workers Compensation Insurance.
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It is required to carry by the State of California. If you are caught not having Work Comp the fines can be ugly. Fines can be up to 20,000 per violation or employee.
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Worker's Compensation Insurance is simply coverage for your employees incase they get hurt. You do not need to carry Work Comp if you do not have employees. If your Employee is hurt then your Workers compensation will cover the medical cost associated with their injury, thus protecting you and your business.
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The way Workers Compensation is rated is based on the type of work performed by the employee. The lowest exposure (Low chance of claim) the lower the rate. ie Office / Clerical - Code #8810. The Highest Exposure (High chance of claim) the higher the rate, Roofers, Electircal power Poles. You rate is based on the amount of pay for all of your employees.
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What you want to do if you are starting a business as not to pay alot of money for California Workers Compensation. When getting started you should guess a modest amount of payroll for your first year. KISS ( Keep It Simple Stupid) guess accurately but low because the rate will be based on that low number. Lets face it, you really do not know how your business will perform in the first year and it is always best to keep your costs low. Less money for down payment and less money for month payment.
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You should always talk to a trusted Insurance Agent/Broker to help guide you through the process of of properly covering your business. Workers Compensation in California can be tricky if you do not know the ins and outs of finding the best coverage and the best rate at an affordable price. A good agent will shop the market and have multiple choices for your California Workers Compensation Insurance.