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Cheapest Workers Compensation Insurance In California

How do you find the cheapest workers compensation insurance in California? One way is to compare base rates by finding your CA workers comp classification code and use that to shop for the lowest cost policy.

CA workers compensation insurance is a policy that covers a business owner’s expenses in the event that one of their employees gets injured during work hours or on company property.

Often times, these injuries can lead to expensive medical bills or lost wages for employees, leaving businesses on the hook for these expenses. Insuring workers compensation means that you do not have to foot the bill yourself.

In California, worker’s compensation coverage can get pretty complicated. Here’s what you need to know to find the cheapest workers compensation insurance in California.

How It Works In California

Workers comp is mandated by the State of California and administered by the WCIRB. Anyone with one or more non-owner employees is obligated to make sure they are insured or risk hefty fines. There is some flexibility however. Employers have the choice of going with the State Compensation Insurance Fund (SCIF) or with a private insurer.

You do not have to be refused by a private company in order to try and obtain coverage from the SCIF. However, they do ask that businesses try and get at least three or more quotes from a private insurer before trying to get insured by the state.

Price Of Insurance

Generally, California is one of the most expensive states to get workers compensation insurance. As of 2014, they are rated at 188% higher than the average state’s price. In the last decade, policyholders have seen their premiums go up steadily. As between private companies however, there is not much consensus, as the rates depend on the coverage and company chosen. The market was so volatile in fact, that many insurers had to leave the state altogether. There are ways to find the cheapest workers compensation insurance in California.

How Lower Your Workers Comp Rates

There are several ways you can reduce your CA work comp premiums and get the cheapest workers compensation insurance in California. Two of the most used are:

  1. Set Up A Workplace Safety Program: By maintaining a safe workplace you can help reduce employee injuries. Less claims equal less premiums.
  2. Set Up Return-to-Work Program: Research shows that the longer a claim is open, the more expensive it is. Theses programs are designed to return injured workers as soon as they are medically able.

Find The Balance in Cost Saving

There are also things you can learn over time. For instance, the bigger your business gets, the more imperative it is that you audit the payroll on your policy. You should be reviewing your policy at least once a year, and making sure it reflects the proper amounts. It’s important to make sure you are not paying premiums for payroll than you have, and also that you are not misclassified. See CA workers comp class codes for more information.

But be careful not to under insure either. Cost cutting measures may seem like a good idea in the moment, but can make you sorely sorry later on. If you underestimate your payroll during the year, you can owe a large amount when you are audited for the year. See California workers compensation insurance for more info.

A Word Of Caution

Remember that the state of California does conduct annual workers compensation audits, so you need to make sure you’re not cutting too much. However, if you’ve been in business for 3+ years with very little or no claims, the ratings bureau in California gives you an “experience mod” (basically a score of your history of claims). Insurance companies are required to give you credit for this score, which can save a lot of money.

Cheapest Workers Compensation Insurance In California – The Bottom Line

We hope this article on the cheapest workers compensation insurance in California was informative. Insuring your business and employees can be a tricky balance. And in California, insurance rates can be some of the toughest costs to a business. However, there are ways to ensure that your employees are adequately insured without breaking your budget. Using proactive research, risk management, and building experience in your sector, you can bring down your insurance costs significantly.

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