Workers’ Compensation Insurance FAQ

Workers’ compensation insurance protects employees and employers when a worker is injured or becomes ill due to their job. It helps pay medical expenses, lost wages, rehabilitation, disability benefits, and can protect your business from lawsuits.

Yes. In California, all businesses with one or more employees—including part‑time—must carry workers’ compensation insurance. Not having coverage can result in heavy fines and stop‑work orders.

• Medical expenses for job‑related injuries or illnesses
• Portion of lost wages during recovery
• Rehabilitation or physical therapy costs
• Disability benefits (temporary or permanent)
• Death benefits for families in case of a fatal accident

Any business with employees must carry workers’ comp. High‑risk industries such as construction, trucking, landscaping, and restaurants face higher injury risks, but even office‑based businesses are required to carry coverage.

The cost depends on industry risk, payroll size, number of employees, and your safety history/past claims. JSSR Insurance Agency compares multiple carriers to find affordable coverage that meets California requirements.

Operating without workers’ comp in California is illegal. Employers may face fines, stop‑work orders, and lawsuits from injured workers. Proper coverage protects your business and your employees.

Independent contractors are generally not covered. However, misclassification is common—if a contractor meets the legal definition of an employee, your business may still be responsible. Review classifications with an insurance professional.

1. Review payroll and employee details
2. Compare quotes from top carriers
3. Customize a policy for your industry
4. Stay compliant with California state law

Local expertise serving Lathrop, San Joaquin County, and all of California; access to multiple carriers for competitive rates; personalized support for small and medium businesses; and guidance on safety programs to reduce claims and costs.