In my discussions with clients, Workers Compensation insurance always seems to come up as one of the least favorite insurance topics. Maybe due to its mandatory status here is California or maybe as it is one of the least understood policies – clients seem to hate it. However, it does come in handy if you ever need it.
There are a couple of things to note about WC insurance:
- It is mandatory if you have employees
- It may be mandatory if you use subcontractors or 1099 employees
- Class codes are based on Industry rather than job title or description, with a few exceptions
- Correct classification is vital; incorrect classification can be costly
- Employers liability coverage is typically bundled together in CA WC policies, this is not necessarily true for other states
- There are specific disclosures for new hires
- There will always be an audit at the end of the year; easy or more in-depth depending on your reporting structure
- We are here to help and will walk you through everything so you are never alone!
There is so much more to discuss that we could be here for days. Check out our Workers Comp page for more information or contact us with specific questions – we are here to help!
