The State requires Workers Compensation insurance if there are any employees. Contractual agreements that enable your business to operate, such as leases, merchandising, and finance contacts, may obligate you to insure beyond your immediate concern. Review them, with your agent. The premium may be based on, square footage of the floor area or, more frequently, payroll or sales receipts. Policy periods are generally annual.
Payment is due when coverage starts or as agreed upon.
Premium financing is usually available, but be aware of the interest rate you will be paying as well as the authority given to the financing organization and how any disruption in your payments will affect your coverage. An employee who has suffered an injury or illness resulting from employment is entitled to workers compensation benefits. California Labor Code Section 3700 requires that every employer in California either buy workers compensation insurance from a licensed insurance company, or obtain a certificate of self insurance from the California Department of Industrial Relations. Failure of an employer to follow this law may result in imposition of both civil and criminal penalties. Because of the complexity of the issues involving this insurance, it is recommended that business owners review to Workers Compensation brochures available from the Department of Insurance and the Department of Industrial Relations.