Recently a news item suggests that business owners may be skipping their workers compensation payments in order to cut business costs. Here are a few reasons to reconsider this option.
- Not a good idea for your business. If you're a local business and don't offer workers compensation, you may incur disguntled employees and may not have support from the local businesses.
- Your business could be shut down. California law requires all employers to provide workers compensation insurance. If you don't comply, you may have your business operations shut down.
- Fines can be very costly. The California Labor Code impose fines against businesses that do not provide workers comp insurance, and these can be very expensive.
- Loss of employees. Some employees may choose not to work for you knowing that you are not providing California workers compensation insurance.
- Lawsuits and claims. If an employee becomes injured and you don't have workers comp insurance, you may face lawsuits and claims. You may have to cover the cost of the injury and legal fees.
Contact John Shafer Insurance Services to review your California workers compensation needs and get a risk evaluation to ensure you are properly covered.