Workers’ Compensation Coverage for Financial Firms in California
Financial firms in California are typically required to have Workers’ Compensation by law. If you do not get coverage for your employees, you will likely be fined.
Despite being at a reduced risk of workplace accidents, financial firms in California need Workers’ Compensation per the state’s strict laws regarding workplace liability insurance. That is because workplace injuries can occur in any environment, regardless of the apparent dangers employees might face. While financial firms do need Workers’ Compensation, certain members of financial firms might be able to exempt themselves from coverage, reducing their company’s premiums. If a financial firm violates any of California’s Workers’ Compensation rules, they are likely to be harshly punished. Consequences for violations often come with expensive fines and, in some cases, jail time for employers in California.
To learn more about what NPN Brokers can do for you and your business, call our California Workers’ Compensation insurance brokers today at (866) 340-9120.
Workers’ Compensation Policies for Financial Firms with Remote Workers in California
In California, having workplace liability insurance is mandatory for most types of businesses, including all financial firms. But what about financial firms that employ remote workers?
As working from home becomes increasingly popular, especially among office workers, the question of whether or not Workers’ Compensation remains necessary comes into play. Even though the working environments of employees might differ, they are still entitled to Workers’ Compensation benefits if injured while working. This means that financial firms that allow their employees to work from home will still have to get Workers’ Compensation policies in California.
California requires all companies with employees to have Workers’ Compensation. This is the case regardless of industry. All workers, whether they operate out of home offices or onsite in company offices, must be covered by Workers’ Compensation. This includes hybrid employees of financial firms as well. If you employ remote workers that live in states other than California, you might need a separate Workers’ Compensation policy. You can ask our brokers about your specific company’s Workers’ Compensation requirements.
Risk of Workplace Injuries for Financial Firms in California
As the owner of a financial firm, you might think that your employees are at a low risk of ever being injured on the job. While that might be somewhat true, that does not mean that you are not responsible for providing them with Workers’ Compensation in California.
The main Workers’ Compensation risks of financial firms typically concern payroll. When a company’s workforce is larger, there is a greater chance of an employee being injured at work, even if they perform low-risk tasks, as financial firm employees often do.
Common reasons for Workers’ Compensation claims in office environments include slips and falls, back injuries, sprains, and occupational illnesses.
While a workplace incident is always possible, financial firms should not have to pay excessive Workers’ Compensation policy premiums in California. If you are not finding quotes that meet your budget, partner with our Workers’ Compensation insurance brokers. We can help you find an affordable policy that provides your employees with benefits should they be injured on the job in California.
Financial Firms and Workers’ Compensation Exemption Eligibility in California
While general employees cannot waive Workers’ Compensation in California, some individuals are eligible for exemptions. This can lower a company’s overall Workers’ Compensation premiums.
When employees are excluded from workplace liability insurance policies, company premiums go down. To take advantage of this, eligible members of financial firms can apply for an exemption from Workers’ Compensation.
Not everyone is eligible for an exemption from Workers’ Compensation insurance in California. Only owners, partners, corporate officers, directors, LLC members, and managers of financial firms may be able to apply for exemptions from Workers’ Compensation. Excluding yourself from a Workers’ Compensation policy can lower your insurance premiums. That said, it also means that you cannot get Workers’ Compensation benefits if you are hurt at work. Because of this, it is important to carefully weigh the pros and cons of using insurance exemptions before doing so. Even if you were previously exempt, you can revoke a Workers’ Compensation exemption in California. Workers’ Compensation exemptions must be renewed regularly.
Financial Firms and California Workers’ Compensation Violations
Employers can be penalized for various Workers’ Compensation violations in California. Common violations include operating a business while illegally uninsured, failing to report an injury to a carrier, and interfering with a Workers’ Compensation claim.
Employers in California must secure Workers’ Compensation policies when required by law and post their insurance information for employees to see. Failure to post a notice of insurance poster is punishable with a $7,000 fine.
Not carrying Workers’ Compensation is also a finable offense. For such a violation, employers might be jailed or fined $10,000. The Division of Labor Standards Enforcement might levy additional financial penalties against employers without Workers’ Compensation in California.
Having Workers’ Compensation is the only thing that protects financial firms from work injury lawsuits. Employees hurt while operating within the scope of their employment can sue their employers when financial firms are uninsured. Not only can this result in employers being held liable for all damages incurred by employees, but it can also alert the Division of Workers’ Compensation to non-compliance, resulting in additional financial consequences.
Owners of financial firms might think that the risk of being penalized for non-compliance is low since the risk of workplace accidents is low. That is not the case. An employee can look up an employer’s insurance compliance and report it to the Division of Labor Standards Enforcement at any time. A workplace accident does not have to take place in order for financial firms to be penalized for Workers’ Compensation violations in California.
Contact Our Brokers to Get Workers’ Comp in California
Call our Workers’ Compensation insurance brokers at (866) 340-9120 to get a policy from NPN Brokers.
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