Workers Compensation Insurance
What is Workers Compensation Insurance and does my business need it?
Another great question! Workers Compensation Insurance provides financial compensation to an employee that has a work-related injury or Illness and this coverage is required by law in California as well as most other states.
So, what does Workers Compensation Insurance cover, exactly? Workers Compensation will cover an injured employee or 1099 worker for:
- Medical Expenses and treatment to assist in recovery and return to work.
- Loss of income due to their injury while the employee is on the mend until they can return back to work.
- Permanent Disability.
- Funeral Expenses and death benefits to minor dependents.
In the State of California, the statutory limits of coverage are:
$1 million paid out per accident.
$1 million paid out per disease per policy year.
$1 million paid out per employee.
Who can be excluded from workers compensation?
In California, only Sole Proprietors, Officers with 10% or more of Stock ownership, Managing Members of an LLC and Immediate Family Members of a Corporation with 1% of ownership may be excluded from coverage by signing a waiver of exclusion.
More importantly 1099 labor must be covered under workers compensation insurance.
What happens if I choose not to carry workers compensation?
In California, operating a private business without workers compensation insurance is a misdemeanor in direct violation of the California Labor Code which can result in the following:
1.) Imprisonment up to 1 year in jail
2.) Not less than a $10,000 fine
3.) State penalty of up to $100,000
Our team of Workers Compensation Specialists can provide you with same day coverage and a competitive price so that you can be compliant with State Law and provide the needed coverage for your team.
Click on our Get Quote now button or call/text us at our toll-free number.
