California Workers Comp for Start Ups

Starting a new business is stressful enough with all that's involved in today's heavily regulated California business climate whether it's a well-funded tech start-up or a small single entrepreneur bakery.  The whole spectrum of new businesses in California require a tremendous amount of time, energy, and work to get off the ground and if you have even one employee on payroll, California Worker's Comp is mandatory.  Unless you're prior occupation was that of a benefits specialist, the world of Worker's Comp in California is probably pretty new to you.  Let's us walk you through Worker's Comp for California start-ups so you can get back to creating the next big business in our State. 

Which companies need Workers Comp in California?

The first question for most California start-up businesses is whether they need Worker's Comp at all.  That's a good place to start.  In general, you will need Worker's Comp coverage in California if you have employees on payroll which do not have ownership in the company.  Think of it this way.  Worker's Comp is liability protection to guard your new fledgling business from the risk associated of a person being injured or disabled while working for you.  California has a very litigious business climate so it's important to  protect your new company from potential expenses that can be catastrophic financially.  It's also mandatory by State law with as little as one employee on payroll.  In general, owners (or officers) of a company are not going to sue themselves but that assumes a certain level of trust and similar interests among officers so you need to consider this if not purchasing Workers Comp for owners/officers.  Again, it's about risk so what's the risk of an owner, partner, or officer coming after the company for disability/injuries resulting from the job.  For all other employees, it's not a's the law and California Worker's Comp is mandatory.  How do you go about quoting and applying for start up Worker's Comp?

Which carriers are available to Start Ups?

This is a good excuse to look at the current marketplace.  You essentially have two strata of WC insurance carriers.  You have California State Fund which is a State government sponsored Workers Comp carrier.  The rates tend to be more expensive but they are also guaranteed issue and generally stand as the sole option for start up companies since these companies do not have any track record or claims experience.  Of course, we can quote State Fund for you and ensure that you not only get the best rates available but navigate the somewhat "government" service feel to keep you well informed and your application expedited.  The rate is the same to you with us or directly through State fund but it's always better to have an experience 3rd party to communicate with instead of the one (if not many) of the 1000's of government workers that might take your call from State Fund.  It's not quite the DMV but it also not the Four Seasons there.

Claims experience opens up other options for Start Ups

Once we have some Workers Comp claims history (generally 2-5 years depending on type of industry), we can then start to shop out your company's California Worker's Comp to private carriers where we can get better rates.  At each renewal, that's a good time to have us re-run the quotes and make sure we're getting the best rate on the market since we're no longer in the "start-up" phase although, you'll probably still be working the same hours.  We are and it's solely towards taking the Worker's Comp worry and hassle off of your California start-up to do list.  

Related Pages:

State Fund for California workers comp


 Quote 3-5 California Workers Comp Carrier with 1 Form





Request Workers Comp Quote

Carrier Landscape
Penalties for not having Workers Comp
Worker Comp Insurance for Start Ups
Health Benefits and Workers Comp Savings
California State Fund Page
California Workers Comp home
Understand Page
Article Database
California Group Health Resource
Contact Page
Quote Review
Questions on Quote
Questions on Proposal

About Us
Terms of Use
Privacy Statement
Our Services  Copyright All Right Reserved.              Helping California Companies find the best priced Workers Comp Insurance