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Lack of insurance in California may be just as expensive

A recent report revealed that California may maintain the highest cost for workers' compensation in the nation. This may lead some employers to the decision that they should operate under a lack of insurance. Without insurance, a business may be exposed to providing hefty medical expenses should a worker be hurt. A lack of insurance may cost an employer thousands of dollars in the event an accident occurs and may require professional help to minimize legal consequences.

Although the California workers' compensation system was recently reformed, some people believe that the high cost of premiums may need further reformation. A study found that for every $100 of payroll, an employer is providing $3.48 of that to workers' comp insurance. This is much higher than the cost that employers in other states may be charged.

Benefits that an injured employee receives from workers' compensation insurance were also increased during the state's reform. Although the changes were meant to help both employees and their employers, some believe more cost cutting work is needed. The consequences an employer faces for cutting costs through negating workers' comp insurance may in fact cause financial damages in the long run.

In the event that a business owner is accused of operating under a lack of insurance after a workplace incident takes place, an employer may have questions concerning their rights. The costs associated with an employee accident or being held financially liable can be staggering. Some California businesses may seek legal guidance to help protect company assets as they work through the process.

Source:, "California Costliest State for Workers' Comp, Report Shows", Don Jergler, Oct. 20, 2014

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