Why Do You Need Workers' Compensation Insurance?

California law requires employers to have Workers’ Compensation Insurance. Even out-of-state employers may need Workers’ Compensation Insurance coverage if an employee is regularly employed in California or a contract of employment is entered into here. All California employers must provide Workers’ Compensation Insurance benefits to their employees under California Labor Code Section 3700. There are five basic types of Workers’ Compensation Insurance benefits – medical care, temporary disability benefits, permanent disability benefits, vocational rehabilitation services, and death benefits. In California, all employers, whether large or small, are required to have coverage for their employees with Workers’ Compensation Insurance. An employee does not have to be full-time, or employed by only one employer for any number of months or days. In addition, there is no need for a written employment contract and employees can include legal and illegal aliens, minors and prisoners. Under certain circumstances; i.e., a home owner, you may be required to have workers’ compensation if you hire someone to perform gardening, maintenance, house cleaning, etc.