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Obtaining A Policy

  1. What is Workers' Compensation?
  2. How do I obtain a policy with State Fund?
  3. How are rates determined?
  4. How long does it take to get a policy with State Fund?
  5. Can I submit my application online?
  6. Do I have to pay a deposit?
  7. What is minimum premium?

  1. What is Workers' Compensation?

    Workers' compensation insurance provides benefits to employees who are injured on the job or become ill as a result of or during the course of employment. In California, every employer is required to carry workers’ comp insurance to cover the cost of occupational injuries and illnesses that arise out of or in the course of employment. This insurance requirement is mandatory even if you have only one part-time employee. Companies based out-of-state with employees hired in California must also have workers' compensation insurance.

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  3. How do I obtain a policy with State Fund?

    Workers' compensation insurance may be purchased directly from State Fund or through a broker that has an established business relationship with State Fund.

    If you want to purchase a policy directly, the first step is to complete an application. You can start the application process online though our “Get a Quote” tool or obtain an application by contacting State Fund's Customer Service Center at 888-STATEFUND (888-782-8338).

    On the application, you will state the number of employees you have, describe the kind of work they do, and provide your estimated annual payroll. Businesses that require licensing may be required to provide proof that such licenses are valid and current. If your business has had prior workers' compensation insurance, you will be asked to provide additional information such as loss runs and your policy history for up to five preceding policy years.

    Insurance coverage becomes effective at 12:01 a.m. (PT) the day after State Fund receives the initial payment unless the broker or the policyholder requests a later date.

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  5. How are rates determined?

    California has a competitive rating system in which all workers’ compensation insurance companies are responsible for establishing their own rates. The Workers' Compensation Insurance Rating Bureau, the statistical agent for the California Department of Insurance, provides carriers with advisory or pure premium rates. These rates are determined by the combined claims costs of each classification reported by all California insurance carriers.

    An insurance company may start with a basic rate for a classification and then give credit discounts for premium size, a good safety record, or positive risk qualities. For example, a company's early return-to-work program or comprehensive health program for employees may warrant a rate discount. On the other hand, high losses, frequency of accidents, or poor safety controls may not warrant a rate discount.

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  7. How long does it take to get a policy with State Fund?

    Once we receive a completed application, it normally takes less than one week to provide you with an insurance quote. Additional information may be required and this could affect the timing of policy inception. Insurance coverage becomes effective at 12:01 a.m. (PT) the day after State Fund receives the initial payment unless the broker or the policyholder requests a later date.

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  8. Can I submit my application online?

    If your policy premium is under $25,000 annually, you can get a quote and bind coverage online using the Get a Quote tool.

    For businesses with a premium over $25,000, you can call our Customer Service Center at 888-STATEFUND (888-782-8338) to submit your information. A State Fund underwriter will contact you within one business day to complete your application for insurance.

    If you work with a broker who submits the application for you, you will usually be able to bind coverage within 2-3 business days.

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  10. Do I have to pay a deposit?

    Most policies do not require a deposit to bind coverage.  Minimum Premium Policies are one exception. State Fund may also require a deposit for policies deemed high risk or for those policies not in good standing. A policy is in good standing when a policyholder pays premium and submits payroll reports on time, cooperates with audit requests, and endeavors to provide a safe workplace.

    If you have further questions, please contact the Customer Service Center at 888-STATEFUND (888-782-8338).

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  12. What is minimum premium?

    Basically, minimum premium is the least amount for which the insurance provider is willing to insure an employer for a given policy. For example: An insurance carrier can set a minimum premium of $500 for your type of business. Assuming your actual annual payroll is only $20,000 with a manual rate of .78 per $100 of payroll, your calculated premium would be $156 ($20,000 x .78 ÷ 100). However, you would still pay $500 in minimum premium instead of $156, since your insurance company has set its minimum premium at that level.

    If you have further questions, please contact the Customer Service Center at 888-STATEFUND (888-782-8338).

    Additional State Fund FAQs

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Note: State Compensation Insurance Fund is not a branch of the State of California.

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