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California contractor caught working with lack of insurance

Statistics show that many contractors with a lack of insurance in the state of California may be providing services to customers. Allowing employees to perform work duties without workers' comp coverage can place a business owner at risk of being discovered. In a recent surprise investigation, the California Contractors State License Board uncovered local contractors working with a lack of insurance and without licensure.

A contract employer in California is responsible for providing workers' comp insurance for workers and maintaining appropriate licenses. Undercover personnel presented themselves to tree trimming contractors as homeowners in an attempt to gain information and catch those practicing illegally. A total of six different companies were contacted for bids and asked to submit estimates above the state required minimum for licensure.

One of the companies that received a citation for a misdemeanor in the investigation had also brought a worker not covered by workers' compensation insurance to the property for the estimate. Workers' comp insurance can supply protection for the employee, contractor and the homeowner in the event an accident occurs during the service. The benefits can help cover medical costs and ensure the injured worker is rightly provided for.

Reports indicate that both the California Department of Insurance and Highway Patrol were involved in the sting. Each of the companies will face the courts regarding their charges for illegal practices. An employer that is caught by authorities operating with a lack of insurance may seek out a seasoned professional to help ease the potential consequences and protect their business.

Source: thebusinessjournal.com, "Tree trimmers cited for contractor violations", , Sept. 4, 2014

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