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What is workers compensation?

Workers’ compensation insurance provides medical and wage benefits to people who are injured or become ill at work. The coverage is mandated by each state and the wage and medical benefits vary by state. Workers’ compensation is considered a social insurance because it relies on a social contract between management and labor, wherein exchange for purchasing workers’ compensation insurance, business owners are protected from civil suits from their workers who become injured on the job. Yet each party benefits has limitations. Workers’ compensation insurance is purchased by businesses, and is underwritten by insurance companies and, in some states, underwritten by publicly supported state funds.

How is the cost of workers compensation insurance determined?

Similar businesses in each state, that exhibit comparable workplace injury patterns and costs, are grouped into “classes.” Rates are determined for each class based on the prior five years of loss costs for all businesses within that class. This provides an equitable system where rates are charged commensurate with the actual loss experience of the class of business. Economic factors for each state are then overlaid onto this data to determine the rate for each class in a given state.

A system called “experience rating” allows for modification of the class rates based on the loss history of an individual business. This system provides business owners a significant amount of control over the cost of their workers’ compensation premium – safe businesses are rewarded with lower premiums and unsafe businesses are penalized with higher premiums.

Who is required to carry workers compensation insurance?

All states, with a small number of exceptions, require businesses with employees who are not owners, to purchased workers’ compensation coverage for those employees.

Businesses that fail to provide workers’ compensation coverage can face severe and costly repercussions including payment of claims out of pocket, fines and possible imprisonment, as well as possibly losing the right to conduct business in the state.

Kerr Insurance can also help you improve cash flow with a payroll and workers compensation integration.

If your a payroll client, you can save time and improve cash flow by automating workers compensation insurance premium payments. We offer PEO programs and traditional work comp programs through the nations largest insurance companies. Backed by strong ratings and impeccable claims processing our insurance carrier partnerships are sure to provide value and support when you need it most.

What you need to know about California Workers Compensation


Class Code
One common error insurers make is creating a commercial insurance policy under the wrong class code. This can result in fines or excessive premiums for your business if you are classified incorrectly.


California Experience Modification Rating System (ExMod) compares actual losses to expected losses when creating insurance premiums. We are well versed in this system and can create a California worker's compensation insurance policy that is sure to protect your business.


Multiple Options
We have access to nearly every top-rated workers compensation carrier in the state of California and nationwide. This provides multiple options for our customers and allows us to create a package that has what you need to protect your business and employees.


What are your options?

  • Traditional workers comp programs.

  • Pay as you go worker's comp. 

  • Packaged workers compensation programs.

  • Professional Employer Organizations (PEO)

  • Kerr Insurance can provide you with all of your options and help you compare rates among the nation's largest workers comp insurance providers

Most importantly - we can automate and integrate your payroll with your workers compensation at a potentially better price then our competition. 

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