Workers Compensation Insurance for California Contractors | EIS California

Protecting Your Crew and Your Company

In California’s fast-paced construction sector, your team’s safety and wellbeing are central to your success. For mid-to-large contractors earning between $5MM and $50MM annually, Workers Compensation Insurance isn’t just about compliance—it’s about stability, profitability, and proactive risk management.

At Eastman Insurance Solutions (EIS California), we help contractors move beyond basic coverage. Our experts design custom Workers Comp programs that align with your operational goals, minimize claim impact, and reward strong safety performance.

What Workers Compensation Insurance Covers

Workers Compensation protects both your employees and your company when job-related injuries or illnesses occur. It ensures that injured employees receive prompt medical care and income replacement, while protecting your business from lawsuits.

Coverage Highlights

  • Medical Care: Pays for hospital, surgery, and rehabilitation costs.
  • Lost Wages: Replaces income for employees unable to work.
  • Permanent Disability: Benefits for employees who cannot return to full capacity.
  • Employer’s Liability: Covers legal expenses if an employee sues outside of the system.
  • Death Benefits: Financial support for dependents in the event of a workplace fatality.

Our team tailors each policy to your trade class codes, job site exposures, and payroll structure—ensuring accuracy and cost efficiency.

California Workers Compensation Requirements

California law mandates that all employers carry Workers Compensation Insurance, even if they have just one employee. Contractors must maintain active coverage to stay in compliance with both the Contractors State License Board (CSLB) and the California Department of Industrial Relations (DIR).

Failure to comply can result in:

  • Immediate license suspension or revocation
  • Civil penalties up to $100,000 per violation
  • Project shutdowns and loss of contracts

EIS California ensures you meet every compliance standard while optimizing your premium through risk-based underwriting and safety performance strategies.

Why Mid-to-Large Contractors Choose EIS California

Larger contractors face unique challenges: multiple job sites, high payrolls, subcontractor oversight, and increasing regulatory pressure. EIS California delivers strategic risk management, not just insurance policies.

Our construction specialists provide:

  • Job site safety audits and loss control consulting
  • Experience Mod (X-Mod) management to reduce long-term costs
  • Claims advocacy and return-to-work programs
  • Multi-state Workers Comp coordination for interstate projects
  • Annual carrier audits and coverage alignment

We partner with top carriers such as The Hartford, Travelers, AmTrust, Liberty Mutual, and Guard to build strong, scalable programs tailored to your business.

Premium Expectations for California Contractors

Workers Compensation costs scale with payroll, trade class, and claims experience. For California contractors in the $5MM–$50MM revenue bracket, annual premiums typically range between:

$10,000 and $250,000+ per year

EIS California helps you identify cost-reduction opportunities through deductible options, safety credits, and structured loss prevention programs—maximizing ROI on every dollar spent on coverage.

Group Captive Insurance: A Smarter Way to Control Workers Comp Costs

For contractors with strong safety programs, consistent profitability, and predictable loss histories, Group Captive Insurance offers a powerful alternative to traditional Workers Compensation.

Instead of simply paying premiums to a carrier year after year, a Group Captive allows like-minded, financially sound contractors to own a portion of their insurance company—sharing in profits, controlling costs, and gaining long-term rate stability.

Key Benefits of Group Captive Programs

  • Profit Participation: Receive dividends when claims are low and the group performs well.
  • Premium Stability: Reduce exposure to volatile market rate changes.
  • Data Transparency: Access claims and loss data to make proactive business decisions.
  • Improved Safety Performance: Captive members often experience fewer claims through shared best practices and accountability.
  • Tax Advantages: Potential to treat premiums as business expenses while capturing underwriting profits.

EIS California partners with top-tier Group Captive providers and helps qualifying contractors transition into these programs. Captives are especially effective for firms with:

  • Annual premiums of $150K or more across Workers Comp, Auto, and General Liability
  • A low loss ratio and strong commitment to safety
  • A desire for greater control and ownership in their risk management strategy

By leveraging Group Captives, our clients often achieve 20–40% lower long-term insurance costs and enhanced cash flow predictability.

Integrating Workers Comp into a Complete Contractor Risk Program

Workers Compensation is one piece of a broader protection strategy. EIS California helps contractors build unified coverage portfolios that include:

A coordinated approach simplifies renewals, improves claims response, and strengthens your firm’s financial resilience.

Frequently Asked Questions

1. Is Workers Compensation mandatory in California?
Yes. All employers must carry Workers Compensation Insurance, and contractors are subject to CSLB oversight for compliance.

2. How are premiums calculated?
Premiums depend on payroll, classification codes, experience modification rate (X-Mod), and claims history.

3. What are the advantages of joining a Group Captive?
Captives allow financially strong contractors to take control of their insurance program, reduce long-term costs, and share in underwriting profits.

4. What if I operate in multiple states?
EIS California designs multi-state Workers Comp programs that comply with local regulations and streamline audit reporting.

5. Can EIS help me determine if I qualify for a Captive?
Absolutely. We provide a no-obligation Captive feasibility analysis to see if your company meets the underwriting and loss criteria.

Build a Safer, Stronger Future with EIS California

Protect your employees, control your insurance costs, and take ownership of your risk. Whether through traditional Workers Comp coverage or a Group Captive program, EIS California provides expert guidance and proven solutions for contractors ready to level up their risk management.

Call EIS California today or visit EISCalifornia.com to schedule your consultation.