The workers compensation insurance for the state of California is a system with the idea that there be a trade-off between employees and employers -- employees are supposed to promptly receive the limited statutory workers' compensation benefits for on-the-job injuries, and in return, the limited workers' compensation benefits are the exclusive remedy for injured employees against their employer, even when the employer negligently caused the injury. Workers Compensation Insurance covers payment of all workers compensation and other benefits that the employer must legally provide to covered employees who are occupationally disabled. If you are a new or start up business, or are expanding your current business operation to include employees, it is important to know that by state law you will be required to have workers’ compensation insurance coverage. Generally, workers’ compensation insurance coverage is mandatory for all employers who have one or more employees, whether they’re part-time or full-time, including family members.