Small Business Guide To Commercial Insurance

17 • Workers Compensation When an employee suffers a work related injury or illness, workers compensation insurance steps in to provide benefits based on the type of illness or injury sustained. Workers compensation is based on a no-fault system, which means that an injured employee does not need to prove that the injury or illness was someone else’s fault in order to receive workers compensation benefits for an on-the-job injury or illness. As a California employer you are required under California Labor Code Section 3700 to provide workers compensation insurance from a licensed insurance company or through the State Compensation Insurance Fund (State Fund). Employers may also have the option to self-insure. Your broker-agent can assist you with purchasing workers compensation from a licensed insurance company and can assist you with information on State Fund and self-insurance. State Fund was established by the state legislature and is California’s largest provider of workers’ compensation insurance. The company is charged with being an available market for all California employers and to compete fairly with other insurers. State Fund plays a stabilizing role in the economy by providing fairly priced workers’ compensation insurance, keeping costs down by helping to make California workplaces safe, and restoring injured workers. You may contact State Fund directly. See the “Resources” section of this brochure for information.