California Work Comp. What Are the Penalties?

[Jerbond]

I just spoke to a company in California, which has not had work comp for over 2 months! The only company I can get to write them is AIG (CHARTIS) which was very pricey. I think the only other carrier that will take them is State Fundl. I gave them the quote, and I think they are still shopping around for a better deal. What are the penalties for laps in WC? Something like $10,000 a day, and close the business down temporarily- if I remember correctly. Anyways, I'm not looking to threaten them, only advise them that they need to take action and get insurance.

 

[JCK818]

Cannot threaten them my friend, they will go with a friendlier person. I'm sure you will find other companies to write them. WHat kind of a company is it.

 

[sgriswold]

I believe some non-admitted carriers will do WC with a lapse and may be cheaper than SCIF. Worth a try; I hate dealing with State Fund. Let me know if you need a good wholesaler.

Also there are some employers who are ALWAYS shopping around. They'll never be happy even if you give them quotes from every available carrier.

 

[Guest]

"Failing to have workers' compensation coverage is a criminal offense.Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers." Source: Ca Dept of Industrial Relations website.