The New Workers’ Compensation law for California Contractors
As of January 1, 2023, certain licensed contractors in California will be required to secure workers compensation insurance under a new law known as Senate Bill 2016. This law, signed by Governor Newsom on September 30, 2020, requires all concrete, heating and air conditioning and tree service companies obtain workers compensation benefits regardless of whether they have any employees. Contractors need to understand the new worker’s compensation requirement and take steps to comply with the law to protect themselves and their employees.
By 2025, all licensed contractors in the state must ensure they have workers’ compensation insurance to remain compliant with necessary requirements.
Workers comp, or workers compensation, is a type of insurance that helps protect workers who are injured on the job. This coverage is important for contractors in California.
Who is affected by the new law
Who is affected by the new workers’ comp law? The Contractors State License Board (CSLB) has stated that the new workers’ comp requirement will apply to all contractors who hold an active license and are engaged in the construction industry. This includes general contractors, subcontractors, specialty contractors, and home improvement contractors.
How to shop for workers compensation Insurance
So, how do contractors go about shopping for workers comp insurance? Contractors need to shop around and compare quotes from different insurance carriers to find the best coverage for their needs and budget.
Some factors to consider when shopping for workers compensation insurance include the type of work being performed, the size of the business, and the number of employees. Contractors should also consider the level of coverage they need, as well as any additional endorsements or coverage options that may be available.
What workers compensation insurance typically includes
Workers’ compensation insurance, also known as disability insurance, is a type of coverage that provides medical and financial benefits to employees who are injured while on the job. This insurance is designed to help employees recover from their injuries and return to work as soon as possible, while also providing financial support to those who are unable to work due to their injuries.
In California, workers’ compensation insurance is required to cover the cost of medical treatment and provide financial assistance in the form of temporary and permanent disability benefits, as well as death benefits.
Medical treatment benefits cover the cost of hospitalization, surgery, and rehabilitation, while temporary disability benefits provide financial support to employees who are unable to work due to their injuries.
Permanent disability benefits are for employees who suffer a long-term or permanent disability as a result of a workplace injury or illness. Disability insurance may also be included in workers’ compensation coverage to provide additional support for employees in these situations.
Death benefits provide financial assistance to the surviving family members of an employee who dies due to an injury or illness related to their work
The importance of complying with the new law and securing workers comp insurance
It is crucial for contractors to understand their obligations under the new workers’ comp law in California and to take steps to secure the necessary coverage. Not only is workers’ comp insurance required by law, but it also provides valuable protection for both contractors and their employees. By obtaining workers’ compensation insurance, contractors can ensure that their employees have access to the medical and financial support they need in the event of work-related injuries or illness, and protect themselves from potential financial liabilities.
The regulations surrounding the workers compensation claim and benefits
In addition to securing workers’ comp insurance, contractors need to familiarize themselves with the rules and regulations surrounding a workers’ comp claim and benefits. This includes understanding the process for reporting workplace injuries, determining eligibility for benefits, and resolving any disputes that may arise. The employer also has a responsibility to provide a safe and healthy work environment for their employees, which can help to reduce the risk of workplace injuries and the need for workers compensation claims.
The employer’s Role in providing a safe work environment and reducing the need for workers’ comp claims
Overall, the new workers compensation requirement for contractors in California serves as a reminder of the importance of protecting both the business and its employees. By securing workers’ comp insurance and following the rules surrounding workers’ compensation claims and benefits, contractors can ensure that they are in compliance with the law and provide the necessary support to their employees in the event of a job-related injury or illness.
Workers compensation insurance helps to cover medical expenses and lost wages resulting from work-related incidents like this one, where a contractor’s employee is seen lying on the ground after slipping and getting hurt on the job.
Protecting both business and employees with workers compensation coverage
Don’t wait – make sure you are in compliance with the new workers’ comp requirement in California and protect yourself and your employees with the coverage you need. At Citizens Insurance, we offer workers’ comp coverage for contractors starting at $1,225 per year.
Give us a call today at 800-498-0884 or click here for coverage online and get the protection you need.
