Workers' Compensation Insurance In Writing
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Workers' Compensation Insurance In Writing

Employers that make a deal with workers to work for their business also agree to carry workers' compensation insurance and proof of their insurance. Having no written statement on hand can get an employer penalized.

California businesses that carry workers' compensation insurance to cover their worker's costs of recovering from illness or injury can not assume the Department of Industrial Relations will simply take their word they are prepared to pay for the costs. The proof of the insurance is important to have in hand.

The state government has to know the insurance is guaranteed.

Statement In Writing

Any employer willing to claim they have workers' compensation insurance has to have a statement in writing that shows an official that looks at it they have the insurance. The paper has to show the insurer's name or the coverage the employer chose. All California companies have to carry workers' compensation insurance. Coverage can be bought from an authorized insurer that will pay for their liabilities. An employer can also choose to self insure and get a certificate from the department. The written statement is used for a proof in addition to the certificate.

Nothing To Show

Employers who are not up front about their insurance coverage will put their workers' compensation insurance coverage in question. Any one that can not hand over a statement to prove they will pay for their liabilities does not have full credibility.

Insurance Investigations

The director at the Department of Industrial Relations will step in and examine an employer's documents to investigate the coverage. A bureau investigator or an attorney can also undertake the investigation into an unprotected workforce. And catch any employer without their proof. Employers that do not hand over the proof within 10 days has given the investigator prima facie evidence they are not in compliance with the workers' compensation law. The uninsured can not use the 10 days to take added time to get insurance and the proof.

Protecting Workers By Giving Penalties

The director uses a penalty to convince employers they have a responsibility to carry workers' compensation insurance.The director makes violators certain they are wrong by levying a fine of up to $500 for their violation. The money is deposited with the State Treasurer in an Uninsured Employers Fund.

Employers that hear they are being prosecuted can not count on the state to offer proof they followed the law and carry workers' compensation insurance. The burden of proof is on them. They have to show they have secured payment of compensation, either by having an insurance company cover the costs or by counting their own ability to pay as a self-insurer.

A Guarantee At Hand

Having a statement on hand guarantees a government officials can know the employer is willing to pay for the costs experienced by an ill or injured worker. The uninsured that do not keep their workers covered continue their business at risk of getting caught and penalized.

Source:

California Division of Labor Standards Enforcement, The Laws Relating To The Time, Manner, and Payment of Wages (December 2010).

Related keywords: lost w2 form 2012
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