Who Need Workers Compensation

Who Needs Workers Compensation

By: Kimmi Van Horn

Who Needs Workers Compensation?

It is a common misconception that many employers do not need workers compensation in the state of California; based on the idea that they are exempt from the requirement. This misconception is based on the idea that they are exempt because you only have one employee, only have part time employees or a similar line of thinking. This is not true. Once you hire an employee, regardless of how many hours they work, you are required to cover them with workers compensation. And if you do not, you can be subject to a hefty fine by the CA Department of Industrial Relations.

Who Needs Workers Compensation- Who is considered an employee?

In the case of an injury (claim), anyone that was working under your direction can be considered an employee. For example, you may think that the volunteers you have or the independent contractor that you hired are not your employees. If that individual is taking direction from you, they could be deemed your employee.

Ideally, an independent contractor has their own workers compensation in place, which will respond in the case of an injury.  Most times, the intendent contractor does not have their own insurance in place and you could be on the hook for all costs incurred from the injury if you don’t have workers compensation coverage and they are deemed your employee.

Who Needs Workers Compensation -But what about family members?

Another common misconception is that employees who are family members are exempt from coverage. This is not true, any employee that you employ and provide direction to, needs to be covered. An employee that is also your family member still needs to be covered by workers compensation insurance.

The easiest rule of thumb? Consult the Department of Industrial Relations to verify if an individual is considered your employee. The Department of Industrial relations is the CA governing body that determines when an individual is considered an employee.

Who Needs Workers Compensation – The Solution

It is important to make sure that you have the right coverage in place to protect your business. The agents at Stone Creek are trained and understand the necessity of Workers Compensation. We have access to numerous competitive insurance companies. Not only can we assist those who are obtaining coverage for the first time, we can assist those who have coverage and need a more competitive option.

Department of Industrial Relations – FAQ Resource

We recommend you consult their website for up to date information. http://www.dir.ca.gov/dlse/dlse-faqs.htm

Have a question? Would you like a quote? Feel free to call Kimmi Van Horn at 925-962-5608. Also, the banner on the right is a great place to get started if you prefer to initiate your request online.

All information is general in nature and is intended to provide guidance only. If is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a question about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling. 

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