Starting a new business in California can be an exciting experience, but it’s also important to think about protecting your employees (and your business). One important way to do this is by purchasing workers’ compensation insurance.
Workers’ compensation insurance provides benefits to employees who are injured or become ill as a result of their job. In California, employers are required to provide workers’ compensation coverage for their employees, unless they are exempt under state law.
Here are some steps to help you begin planning to purchase workers’ compensation insurance for your new business:
Determine your obligation to provide coverage
In California, most employers are required to provide workers’ compensation coverage for their employees. However, there are some exceptions.
It’s critical that you understand what’s required of you. Failure to provide necessary workers’ compensation coverage can potentially leave your business vulnerable to fines, employee lawsuits, and other such consequences.
You don’t want all your hard work to be undone because you failed to obtain workers’ compensation insurance as required under California law. Thus, it’s essential that you research your obligations early.
Research insurance options
There are a variety of workers’ compensation insurance options available, including policies from insurance companies, the State Fund, and self-insured programs. Take the time to research and compare the options available to you to determine the best coverage for your business.
Consider your business risks
Your business risks will impact the cost of your workers’ compensation insurance. Consider the type of work your employees will be doing, the physical demands of the job, and the potential for injury or illness.
Obtain quotes
Contact several insurance companies or brokers to obtain quotes for workers’ compensation insurance. Be sure to compare the coverage, cost, and customer service of each option.
Evaluate your budget
Determine how much you can afford to spend on workers’ compensation insurance. Keep in mind that the cost of workers’ compensation insurance is tax-deductible. Your goal should be to purchase the coverage you need instead of making risky sacrifices in an attempt to save money.
Review and understand the policy
Once you have selected a workers’ compensation insurance policy, review and understand the policy details, including the coverage, cost, and any exclusions or limitations.
Report new hires
It’s important to report new hires to your workers’ compensation insurance carrier promptly. This will ensure that your employees are covered in the event of an injury or illness.
How a Los Angeles Workers’ Compensation Counseling Firm Can Help
Whether you’re a new business owner in California buying workers’ compensation insurance for the first time, or you’ve been running your business for years but are concerned about whether you have the insurance you need, it’s wise to coordinate with experts in these circumstances. At Sacks Law Group, APC, a team of Los Angeles workers’ compensation counseling specialists is on hand to help you ensure your business and its employees are properly covered. For more information, contact us online or call us at 310-216-7778.
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