Customer Support
888-STATEFUND (888-782-8338)
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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If you want to purchase a policy directly, you can start the application process online though our “Get a Quote” tool, or you can reach out to your broker.
Insurance coverage becomes effective at 12:01 a.m. (PT) the day after we receive the initial payment unless you request a later date.
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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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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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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) 782-8338.
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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) 782-8338.
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Note: State Compensation Insurance Fund is not a branch of the State of California.
