California Workman's comp is priced with the help of NCCI. There are approximately 750 workman's comp codes and most states use the same codes but the pricing will vary by state. California Workman's comp premiums are calculated based on each $100 of payroll. For example, a low-risk occupation like clerical might cost .37 cents per $100 of payroll. Premiums rise as jobs become more of a risk, with contractors costing about $12 per $100 and even higher-risk occupations like roofers costing as much as $22.19 per $100. If your California workman's comp premium is in excess of $5,000, you should have a plan that pays you back a dividend based on your claims history. There are teams of California workman's comp specialists that can assist you in determining what program will be best suited for your business.

California Workman's comp provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. California Workman's comp also provides death benefits to any surviving spouses and dependents. Each state does have different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved. California Workman's comp must be bought as a separate policy. Although in-home business and business owner's policies (BOPs) are sold as package policies, they do not include coverage for workers' injuries.

Not every employer needs California workman's comp. In some states small businesses with fewer than three to five employees may not be required to carry California workman's comp insurance. However, in today's litigious times you may be setting yourself up for a huge legal bill, unlimited personal and or corporate financial liability, including punitive damages, which could run in the millions. Do you remember the lady that spilled McDonald's coffee on her lap! Just because your state may not require you to carry workers compensation does not relieve you of the responsibility if an injury or death occurs. Another option in many states is self insuring your company to cover the costs from employee injuries or death. Whether this is a good idea depends on your business, especially your financial state or that of your company.