Workers’ Compensation basics (part 2)


Many small business owners know they must have workers’ compensation for their employees. However, they do not get insurance because they believe it is too expensive and out of their reach. This may not be true! Also, they do not know what the posting requirements are. Let’s go over some of these issues!

How much does workers’ compensation insurance cost? It varies by industry, the Workers’ Compensation Insurance Rating Bureau – the licensed statistical agent for the state insurance commissioner – issues recommended rates and insurance carriers must file their rates with the California Department of Insurance, rates can vary from carrier to carrier. The pure premium rates proposed to be effective in 2016, for the 491 standard classifications, average $2.45 per $100 of payroll (or 2.45%).

The cost of your workers’ comp premiums will depend on your industry classification, your company’s past history of work-related injuries (aka experience modification), your payroll, special group or dividend programs you may be eligible for among other factors.

What are my posting requirements?  You must post the “notice to employees” poster in a place at the work site where employees can see it. This poster provides employees with information on your workers’ compensation coverage and where to get medical care for work injuries. If you do not post the notice it may cost up to $7,000 per violation. Also, you must also provide all your newly hired employees with a workers’ compensation pamphlet explaining their rights and responsibilities.

Being in compliance with the law when it comes to workers’ comp is not that expensive or difficult. Do not be afraid of asking question to debunk some myths or preconceive notions about this insurance. Post the notice, give all your new hired employees this information and avoid the potential penalties for non-compliance! It’s worth it!



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