The State of California requires every employer to have liability insurance to cover the medical cost involved with an employee getting injured at work. All of the California workers comp information can be very complicated to understand. For this reason each employer generally consults experts in the part of California workers comp information that most directly concerns their employment type.
The state has compiled a huge set of books that lists every kind of company and has listed a code number that corresponds with the historical risk of employee injury. For example, someone working in construction is at higher risk of being injured than someone working at an office job. The code number for a company establishes the level of liability insurance that a company is required to have.
There are a wide variety of insurance providers that specialize in the risks inherent to the various industries. There are also companies that work with many of the major providers so that when a company comes to them to get the required insurance, these companies are able to compare the rates of available providers in order to get a company the lowest possible insurance rate.
California workers comp information also requires periodic re-evaluation of the amount of insurance individual companies are required to maintain, based to the number of injury claims filed. This re-evaluation takes into consideration the possible state wide increase in workers comp claims, as well as the number of claims that particular company has filed.
Another consideration of the amount of insurance a company will be required may be based on more than one policy of insurance, due to the variety of job types that a company has. This is also where a good agency company comes in handy. They can not only shop around for a single policy for a company, but also for packages of policy types combined to help a company comply with the California workers comp insurance requirements.
Every company in California, whether a new start-up company or a multi-national company operating within California must comply with the California workers comp information listed by code. The required liability insurance must be maintained for every worker working within California's borders.