Workers Compensation

Workers' compensation is the nation's oldest social insurance program: It was adopted in most states, including California, during the second decade of the 20th century. The workers' compensation system is based on a trade-off between employers and employees. Employees are entitled to receive prompt, effective medical treatment for on-the-job injuries or illnesses no matter who is at fault and, in return, are prevented from suing employers over those injuries.

As a result, California employers are required by law to have workers' compensation insurance, even if they have only one employee. And, if your employees get hurt or sick because of work, you are required to pay for workers' compensation benefits. Workers' comp insurance provides six basic benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits or vocational rehabilitation and death benefits.[1]

Q: Do I need to have workers' compensation insurance?

A: Yes, California law requires employers to have workers' compensation insurance if they have even one employee. If you are a roofer and don't have any employees, you are still required to carry workers' compensation insurance. If you are a real estate broker you are required to carry workers' compensation insurance for your agents, even if they are independent contractors.

Out-of-state employers may need workers' compensation coverage if an employee is regularly employed in California or a contract of employment is entered into here.

Q: My spouse and I are the sole owners of our business. We have no employees. Are we required to obtain workers' compensation coverage?

A: 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 even if it's just temporary employment. You should consult with your attorney, insurance agent or broker, or carrier regarding the specifics of your situation and your options.

Q: Are executive officers or directors of the company covered under its workers' compensation policy?

A: Generally, 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. In the case of sole owners, they may elect not to be covered. Several sections of the California Labor Code must be considered to answer this question. You should consult with your attorney, insurance agent or broker, or your carrier regarding the specifics of your situation.

Q: Where do I get workers' compensation insurance?

A: 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. You can find a list of authorized insurers on the California Department of Insurance Web site.

If you can't find an insurer willing to cover your business, the State Compensation Insurance Fund (State Fund) is required to provide you with coverage.

If you belong to a trade association you might want to check with it first - some trade groups negotiate special rates for members. Your local chamber of commerce may also be a source of good advice.

Q: What about self insurance?

A: Self insurance requires state approval, a net worth of at least $5 million, net income of $500,000 per year and posting of a security deposit. While historically only very large companies could self-insure because of legal requirements, in recent years group self insurance, in which several small employers in the same homogenous industry pool their workers' compensation liabilities, has increased in popularity as an alternative to traditional coverage. Contact your broker or the state's Office of Self Insurance Plans for information on how to self insure.

A self insured employer has the option of administering its own workers' compensation claims or contracting with a third party administrator (TPA) to provide these services.

Q: How much does workers' compensation insurance cost?

A: Workers' compensation insurance premium rates are not regulated by the state. While the Workers' Compensation Insurance Rating Bureau - the licensed statistical agent for the state insurance commissioner - issues recommended rates and carriers must file their rates with the California Department of Insurance, rates can vary from carrier to carrier. Like any good consumer, you should shop around for a carrier that best meets your needs. Cost is one consideration, but there are other factors to look at: the services provided, ease of access to the claims adjusters, their familiarity with your industry, etc. If you have a broker or agent, he or she should be able to give you expert guidance.

Q: What determines how much I'll pay for my premiums?

A: 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. [2]

Commercial General Liability

Do I need to carry Commercial General Liability coverage for my business? If you are a business owner in
 the state of California it is highly recommended that you carry Commercial General Liability coverage.
This type of coverage protects you in the event your customers suffer loss\damages that arise out of the actions of your business

Commercial Automobile

Do you operate vehicles in the course of your business? If you do then you likely need to carry
Commercial Liability coverage. Most personal auto insurance policies do not cover vehicles that are use as
a part of any business. When a vehicle is used primarily in connection with your business typically you
would need to carry Commercial Automobile coverage to protect you in the event of a
loss arising out of the use of a company vehicle

Life

Whole Life Insurance is a type of policy that is meant to provide life insurance protection for a person's entire life or until they reach the age of 100 years, whichever comes first. This is a permanent type of life insurance policy, which means that you'll be paying on it for as long as you live, unless you happen to get a specific policy where you can pay it off early, such as a "Paid At 60" policy. These types of policies charge much higher premiums, however you'll only pay on them for a specified period of time and be finished. Anyway, I don't want to get too far off track.

When you pay into a Whole Life Insurance policy, a portion of your premium payments go toward buying insurance, while the rest goes into a savings account that accrues cash value. This cash value will accumulate and begin to draw interest over time. This will actually build into an asset that you can use as collateral or borrow from. You must repay the loan in order for the entire face value of the policy to be paid out in the event of your death.

Health

Having good health insurance has been extremely important in an era of ever increasing medical costs.
We are able to offer group plans for your business as well as individual plans.

Retirement

Reaching your retirement goals depends of making good pre-retirement decisions. Investing you money
with safety and return will help you reach your retirement goals.

1. http://www.dir.ca.gov/dwc/employer.htm (5 November 2007), 2. http://www.dir.ca.gov/dwc/faqs.html (5 November 2007), 3.  http://ezinearticles.com/?Whole-Life-Insurance-Explained---This-Is-How-Whole-Life-Insurance-Works&id=802222 (5 November 2007)