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Questions & Answers

What is Workers' Comp?

  1. WC is require by law since 1914.
  2. It is “No Fault“ concept
  3. Exclusive remedy


  1. Fine: $10,000 – misdemeanor for employer
  2. 1 year jail
  3. Up to $100,000 fine to organization.
  4. Enduring cost for any claims.
  5. Stop order for the business.
  6. Fine of $1,000 per EE who is working.


Part One Benefits - Medical:

  1. no waiting period
  2. no dollar limit
  3. no co-insurance
  4. no deductible.
  5. Rehabilitation
  6. Temporary / permanent disability
  7. death benefits

All of the above is tax free.

Part Two Benefits - Employers liability:

  1. Body injury $1,000,000 each accident.
  2. Disease: $1,000,000 policy limit
  3. Disease: $1,000,000 each employee

Policy limit in other state list in Part 3.

Who doesn’t need WC insurance.

  1. Domestic employee. i.e. gardener
  2. Work less than 52 hrs in 90 days.
  3. Charity workers & volunteer workers. -- This can be endorse policy -$75 flat charge

Who needs WC insurance

  1. 1099 – eg. Real estate agent who will drive the client to see the house
  2. eg. Hairdresser who rent a station & use the tools from the ER

Officer who has no ownership need WC coverage.

The minimum premium is $ 41,600.

The maximum premium is $ 106,600.

For sole proprietorship / individuals

either husband of wife own the company, the spouse also excludes from the WC.

SIC – Standard Industrial classification.

Class code stand for what function the employee work.

Ex-mod – not every group has ex-mod

WC is an annual policy

If midterm canx, - the carrier will charge mid term canx. Fee.

Split Risk

eg. if insured own 2 different king of business.

eg.100% ownership for the restaurant, 50% for the gas station, the insured has to buy the insurance for both business with the same carrier.


Call : 626-968-8867
Local agency
15920 Halliburton Road,
Hacienda Heights, CA 91789

Q & A

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