Workers Comp... No big deal right?

Here in California workers compensation coverage is a very, very, big deal. If you, the employer, elects workers compensation coverage, then if one of your employees gets injured, their sole source of recovery will be the workers compensation coverage. Pretty cool right? Now, what happens if you fall on hard times and can't make your workers comp payments? Doesn't bode so well...

This is seen as a huge risk for insurance. Stuff does happen, but leaving yourself open to a multi-million dollar lawsuit doesn't seem like a prudent thing to do. Therefore, many insurance carriers will see this activity as negligent and will usually not offer coverage to your clients. This makes sense though. In the insurer's mind, if he/she is willing to let his workers compensation go, what other risks is he willing to take.

Once coverage gets going again, typically, many carriers will require at least 36 months of continuous coverage before they can took at the risk again. This shows that he or she has "learned a lesson" and will not hopefully stray again. By continuing coverage with no lapses, they'll even even eventually get a discount.

There's a famous saying "The only thing true in life is death and taxes." For business owners, they should rephrase the saying to "The only true thing in life are death, taxes, and workers compensation premiums." Don't let this lapse happen to you!

-Dwight Bentz