What Is Workers' Compensation Insurance?

Workers' compensation insurance protects your business and employees when workplace injuries or illnesses occur. If an employee gets hurt on the job—whether it's a slip and fall, repetitive strain injury, or work-related illness—workers' comp covers their medical expenses and lost wages while they recover. In California, nearly all employers must carry this coverage, even if you only have one employee. Our insurance agents help San Bernardino businesses navigate state requirements and find affordable coverage.

This coverage is a no-fault system, meaning employees receive benefits regardless of who caused the injury. In exchange, employees generally can't sue your business for workplace injuries. This arrangement protects both parties—your workers get medical care and income replacement without lengthy court battles, while your business avoids potentially devastating lawsuits. For small business owners throughout San Bernardino and the Inland Empire, workers' comp isn't just legally required—it's essential protection for your company's financial stability.

What Does Workers' Compensation Insurance Cover?

Workers' compensation insurance provides comprehensive protection for workplace injuries and illnesses. Here's what your policy typically covers:

• Medical Expenses: All necessary medical treatment including emergency care, surgery, hospital stays, medication, physical therapy, and rehabilitation services. Coverage extends to ongoing care if the injury requires long-term treatment.


• Lost Wages: Partial wage replacement while your employee can't work, typically covering about two-thirds of their average weekly wage. Benefits continue until the employee can return to work or reaches maximum medical improvement.


• Disability Benefits: Compensation for temporary or permanent disabilities resulting from workplace injuries. This includes both partial and total disability benefits based on the severity and duration of the condition.


• Vocational Rehabilitation: If an employee can't return to their previous job due to injury, workers' comp may cover retraining or job placement services to help them find suitable employment.


• Death Benefits: If a workplace accident results in death, your policy provides financial support to the employee's dependents, including funeral expenses and ongoing income replacement.

Your workers' comp policy also covers legal defense costs if an employee disputes their claim or benefits. The insurance company handles claim administration, medical bill payments, and any legal proceedings—removing these burdens from your plate so you can focus on running your business.

What workers' compensation doesn't cover are injuries that occur outside of work, intentional self-inflicted injuries, or injuries sustained while an employee is under the influence of drugs or alcohol. Coverage applies specifically to work-related incidents that happen during employment activities.

How Much Does Workers' Compensation Insurance Cost?

Workers' comp premiums vary significantly based on several factors specific to your business. Understanding these factors helps you anticipate costs and identify ways to potentially reduce your premiums.

Your payroll amount is the primary factor—premiums are typically calculated per $100 of payroll. Higher payrolls mean higher premiums, but rates vary dramatically by job classification. California uses industry class codes to categorize different types of work based on risk. Office workers might cost $0.50 per $100 of payroll, while roofing contractors could pay $30 or more per $100 of payroll. Your specific industry and the types of work your employees perform directly impact your rates.

Your experience modification rate (EMR) is crucial for businesses that have been operating for three years or more. This rating compares your actual claims history to the expected claims for businesses similar to yours. An EMR of 1.0 is average. If you have fewer claims than expected, your EMR drops below 1.0, reducing your premiums. More claims push your EMR above 1.0, increasing costs. Maintaining a strong safety program and minimizing workplace injuries directly improves your EMR over time.

California also considers your claims history and any prior coverage gaps. Businesses with clean safety records qualify for better rates, while frequent claims signal higher risk to insurers. Working with an independent agency gives you access to multiple carriers, each with different underwriting criteria and pricing structures. We help San Bernardino businesses compare options to find competitive rates that match their specific risk profile and budget requirements.

Do I Need Workers' Compensation Insurance?

In California, workers' compensation insurance is mandatory for nearly every business with employees. If you have even one employee—whether full-time, part-time, or temporary—you're required to carry coverage. This includes family members working for your business, with very limited exceptions.

The consequences of operating without required workers' comp coverage are severe. California imposes substantial penalties including fines up to $100,000, criminal prosecution with possible jail time, and stop-work orders that shut down your business until you obtain coverage. If an uninsured employee gets injured, you're personally liable for all medical expenses, lost wages, and potential lawsuit damages—costs that could bankrupt your business.

Certain business owners may qualify for workers' comp exemption in California, including sole proprietors with no employees, some corporate officers, and specific construction contractors under certain conditions. However, even if you're exempt, you might choose to carry coverage anyway. Workers' comp protects your personal finances if you get injured while working, and many general contractors require all subcontractors to carry workers' comp before allowing them on job sites.

For small business owners throughout San Bernardino, workers' comp provides essential protection beyond legal compliance. It demonstrates to employees that you value their safety and wellbeing, helps you attract quality workers, and protects your business from financial devastation if workplace accidents occur. Whether you run a restaurant, retail store, construction company, or professional office, having proper coverage in place keeps your business operating legally and protects everything you've built.

How to Get Workers' Compensation Insurance in San Bernardino

Getting workers' comp coverage for your San Bernardino business is straightforward when you work with a local independent agency. California's workers' compensation system has specific requirements and regulations that vary by industry and business size. Our team understands these local requirements and helps you navigate the process efficiently.

Start by gathering basic information about your business—your payroll amounts, employee job descriptions, and industry classification. California uses specific class codes to categorize different types of work, and accurate classification is crucial for proper coverage and fair pricing. We help you identify the correct codes for your employees to ensure you're neither overpaying nor risking coverage gaps.

As an independent agency serving the Inland Empire since 2006, FOCO Insurance Services shops multiple insurance carriers to find you the best combination of coverage and price. Different carriers specialize in different industries and have varying underwriting appetites. Some excel at covering construction trades, while others focus on retail, restaurants, or professional services. This access to multiple markets means we can match your specific business with carriers that understand your industry and offer competitive rates.

California requires you to post workers' compensation notices in your workplace and provide information to new hires. We'll provide these required documents and help you understand your ongoing compliance obligations. Your policy will be audited annually based on actual payroll, so maintaining accurate records throughout the year helps avoid unexpected audit bills.

Get Your Free Workers' Compensation Insurance Quote

Protecting your San Bernardino business and employees with workers' compensation insurance doesn't have to be complicated or expensive. FOCO Insurance Services has served local businesses throughout the Inland Empire for over 19 years, combining advanced technology with personal service to get you covered quickly.

Ready to get started? Contact our team today for a free workers' comp quote. We'll review your business needs, explain your coverage options, and shop multiple carriers to find you competitive rates. You can reach us by phone, visit our San Bernardino office, or start your quote online—whatever works best for your schedule. Get the coverage your business needs with the honest, transparent service you deserve.