Are you required to take out workers’ compensation coverage? It can sometimes be a significant expense for a small business however, not taking out this insurance when you’re legally required to can be much more costly. How are the rates set? The California workers compensation rates are set by the Workers Compensation Insurance Rating Bureau, a licensed statistical agent for the state insurance commissioner.
Can they vary? Yes, much like any other type of insurance. The higher the risk presented by your business, the higher the cost of coverage can be. In the first instance, your rate will be determined by the type of business you have and the number of employees you have on the payroll. In years to come, the safety standards and practices of your business and the number and size of claims may also play a role in determining the cost of your policy.
Keep this in mind from the day you take out your first policy and aim to be diligent in creating a safe and healthy workplace for all your employees.
There are a number of insurance providers who offer this type of coverage. To find out what the California workers compensation rates will be for your enterprise, speak to one of our agents.