Are There Different Ways To Insure Employees?

March 23, 2019
Sacks & Zolonz, LLP
Uninsured Employers

If you are starting a business in California and plan to hire even one employee, then you are going to be required to have workers compensation insurance. We realize that this is an expense to your business, but it is one of the costs of operating in the state. It is important to understand the workers’ compensation laws of the state and how you will be affected by failing to provide coverage. There are also a few different ways to provide coverage.

At Sacks & Zolonz, LLP, we specialize in helping employers through the legal issues concerning workers’ compensation insurance. If you think you may need a Los Angeles uninsured employers attorney, you can call us today.

What Constitutes Coverage?

The California Department of Industrial Relations Division of Workers’ Compensation goes over the types of coverage that are available, but they themselves do not provide coverage. There are a few options available to employers in California:

  • Employers can purchase workers’ compensation from a licensed insurance company or through the State Compensation Insurance Fund. You can see a list of the top 50 workers’ compensation insurers by clicking here (this is the list provided by the DWC).
  • Employers can self-insure but this requires state approval. A company must have a net worth of at least $5 million, a net income of $500,000 a year, and a posted security deposit.
  • Self-insurance is often unattainable by all but the largest companies, however many small employers in the same industry have pooled their resources to essentially meet the requirement listed above.

Can An Injured Workers File A Lawsuit Against Me?

If you have workers compensation coverage, then in most cases an injured worker cannot bring a personal injury claim against you, regardless of who was at fault. That is one of the benefits of having insurance coverage.

However, if you do not have workers’ compensation insurance at the time a worker is injured, they will most likely be able to file a personal injury claim against the company. This can result in large settlements that are well above the amount of money it would have cost to have coverage in the first place.

How We Can Help

All workers have a right to workers’ compensation coverage. This includes full time, part-time, seasonal, and temporary workers. It is vitally important that you, as an employer, understand all of the laws relating to workers’ compensation insurance. At Sacks & Zolonz, LLP, we understand that operating a business is costly and that you look for ways to trim expenses when you can. If you do not have workers’ comp coverage, please know that you can face criminal charges, massive fines, and up to one year in jail.

When you need a Los Angeles uninsured employers attorney, you can contact us for a consultation by clicking here or calling 310-216-7778. Our knowledgeable and experienced team will work to ensure that you are treated fairly and can get back to your life and running your business.

Related Posts
Uninsured Employers

Providing expert defense against fraudulent and frivolous workers’ compensation claims.

Insurance Carriers & Self Insured Employers

Providing comprehensive workers’ compensation defense to insured and self-insured Employers.