The Role of Workers' Comp Insurance

Workers' compensation insurance is legally required for most California businesses with employees. It protects both your employees and your business when a workplace injury or illness occurs.

What Workers' Comp Covers

• Medical treatment for work-related injuries and illnesses
• Temporary disability benefits (when an employee can't work while recovering)
• Permanent disability benefits (if the injury causes lasting impairment)
• Supplemental job displacement benefits (retraining costs)
• Death benefits for surviving dependents

California Workers' Comp Requirements

California law requires all employers — including those with just one employee — to carry workers' compensation insurance. Operating without it is a criminal offense and can result in fines up to $100,000 and stop-work orders.

Sole Proprietors & Independent Contractors

Sole proprietors without employees are typically exempt, but may want to carry coverage for their own protection. Independent contractors are generally not covered under a client's workers' comp policy — they need their own coverage.

How Rates Are Determined

Workers' comp premiums are calculated based on your payroll, industry classification code, and claims history (experience modification rate). Peter shops your coverage across multiple carriers to find the most competitive rate.