California Workers Compensation Insurance- Workmans Comp

This is a great California Workes Compensation brochure for any business looking to learn about workers compensation in California click the link below for your free copy

Brochure for California Workers Compensation Insurance

California Workers Compensation Insurance

California Workers Compensation

1. Who needs Workers' Compensation coverage?

California law requires employers to have Workers' Compensation Insurance. Even out-of-state employers may need Workers' Compensation Insurance coverage if an employee is regularly employed in California or a contract of employment is entered into here.

All California employers must provide Workers' Compensation Insurance benefits to their employees under California Labor Code Section 3700. There are five basic types of Workers' Compensation Insurance benefits - medical care, temporary disability benefits, permanent disability benefits, vocational rehabilitation services, and death benefits.

Workers' Compensation coverage is offered under Part One of a Workers' Compensation Insurance policy. In Part one, the insurance company agrees to promptly pay all benefits and compensation due to an injured worker. Employers Liability insurance can provide important coverage in addition to Workers' Compensation Insurance. Employers Liability is offered under Part Two of a Workers' Compensation and Employers Liability Insurance policy. Employers Liability Part Two protects the employer against instances where an employee's injury or disease is not considered work related.

In California, almost all employers, whether large or small, are required to have coverage for their employees with Workers' Compensation Insurance. An employee does not have to be full-time, or employed by only one employer for any number of months or days. In addition, there is no need for a written employment contract and employees can include legal and illegal aliens, minors and prisoners. Under certain circumstances; i.e., a home owner, you may be required to have workers' compensation if you hire someone to perform gardening, maintenance, house cleaning, etc.

2..Who can exempt themselves from Workers Compensation Insurance?

Effective January 1, 2004, only corporate officers or limited liability company (LLC) owners in the construction industry with at least a 10 percent stock ownership in the corporation or LLC can elect to exempt themselves from Workers’ Compensation coverage. No more than three per corporation or LLC are allowed to be exempt. This new law will curb the tide of costly and dangerous practices by those construction employers looking to make a fast buck, while exposing employees and consumers to financial and physical harm.

3. What do you consider a Sub-Contractor or Independent Contractor vs an employee ?

Independent contractors and subcontractors are considered employees of their clients unless they meet certain very specific criteria for independence and both parties sign a notarized document which spells out how these criteria are met.

4. Can a sole proprietor or individual exempt themselves from Workers Compensation Insurance?

Sole Proprietors and partners are not required to cover themselves, but can elect to be covered a minimum payroll of $35,100 to a max of $92,300 will be charged based on sole proprietors payroll. Corporate officers are covered but those who own at least 10% of the corporations stock may elect to be exempted from coverage

If you work for yourself or own a business, you may not be required to carry Workers' Compensation Insurance coverage. Sole proprietors, partners, and officers of closely held corporations are generally not considered employees unless specifically listed under a policy. If, the employer hires employees, the employees may be covered even if the owner is not.

Sole proprietors, partners, and officers of closely held corporations are generally not considered employees unless specifically listed under the business Workers' Compensation Insurance policy.

Employee Leasing and Staffing Companies

Using a PEO or Staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers comp policy. in many cases the down payment required to obtain a new workers compensation insurance is high and many new businesses cannot afford the down payment. Another advantage based on my experience is your will never get audited because you pay as you go for your coverage. We represent many different leasing companies and staffing companies and will be more than happy to price your coverage using this option. In many cases these leasing companies will offer deep discounts on your workers compensation coverage that you will not find from a standard workers compensation carrier.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act , courtesy of Cornell University.
Click here for: USL&H Web Site - Dept of labor

Read the complete text of the Jones Act here.

California Workers Compensation

California Workers Compensation Links

News and Legislative Updates
California Workers Compensation Act
Archived Statutes Center
California Workers Comp. Forms
California Industrial Commission Rules
Quick Facts and Contact Information
California Workers Comp. Forums