Who Needs It? : A Series Workers Compensation Edition

Who really needs Workers Compensation?

  • Workers’ compensation is required for all employers (even if the company only has one employee).
  • Sole proprietors usually are not required to have a workers' compensation insurance.


Do I need workers’ comp if I’m self-employed?

  • Not typically, unless you are required for contract purposes by an organization.

What about for Part-Time Employees?

  • Workers comp is required by all employers for every employee full and part time.

What does Workers’ comp cover?

  • Medical expenses
  • Temporary/permanent disability
  • Vocational rehab or training
  • Return to work fund
  • Lost wages
  • Death benefits

What is not covered by Workers’ Comp?

  • Injuries caused by:
    • Commuting to or from work
    • Recreational activities
    • Workplace fighting
    • Intoxication or substance abuse

How is Workers’ Compensation priced?

  • Classification or occupation:
    • The cost of workers compensation varies from industry to industry.
      • The more hazardous, the more the premium increases.
        • Example- Someone working in the manufacturing industry where it’s more labor intensive, with high safety concern would be rated more than a barista at a coffee shop.
      • Payroll:
        • The payroll directly impacts the overall cost of the workers’ compensation premium.
          • Example- a business with a $100,000 in payroll will have a much higher premium than a company with $50,000.

How do you get the best rate with Workers Compensation?

  • Work with an Insurance Broker!
    • Insurance brokers have access to multiple insurance companies and are able to bid your policy for the most competitive price.

Formalized safety programs, safety meetings and having the property protective equipment will allow you to apply for credits that can decrease the overall cost of your policy.

For any questions, comments or concerns give us a call at (951) 494-7272 or email at This email address is being protected from spambots. You need JavaScript enabled to view it. !