Jump to Navigation

What happens if I do not have workers’ compensation insurance?

As an employer in California, you have to be concerned with what happens if an employee gets injured on the job. The California Department of Insurance notes that all employers must have workers’ compensation insurance. It does not matter if you have only one employee or you have 200 employees, you are legally required to carry the insurance. Trouble starts if you do not have it.

Because carrying coverage is required under the California Labor Code, if you do not have coverage, you are in violation of the law. It is categorized as a misdemeanor. Your business can be closed down, or you can be fined by the Division of Labor Standards Enforcement. Since it is a criminal offense, you may also face up to one year in jail and/or a fine of up to $10,000. The state may also fine you a maximum of $100,000. It is also important to note that the Uninsured Employers' Benefit Trust Fund has the right to file charges against you for fraud if you willfully do not carry insurance coverage.

Even worse than all the fines, possible jail time and having your business closed, you also become liable for any injuries that your employees may suffer while at work. You can be sued for medical bills, lost wages and other expenses associated with any accidents. Even one seemingly small accident can lead to extreme expenses that you will likely end up being ordered to pay. This is for informational purposes only and not intended as legal advice. 

No Comments

Leave a comment
Comment Information
Subscribe To This Blog's Feed
Main Office Los Angeles County 800-461-0268 Inland Empire Orange County Office 800-461-0268
Contact Sacks & Zolonz

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Office Locations

Main Office

400 Corporate Pointe
Suite 800
Culver City, CA 90230
Phone: 800-461-0268
Fax: 310-216-9552
E-mail Us | Map & Directions

Inland Empire &

638 North Eckhoff Street
St. Orange, CA 92868
Phone: 800-461-0268
Fax: 909-476-2131
E-mail Us | Map & Directions

Rancho Cucamonga &
Workers Compensation Office

9513 Business Center Drive, Suite H
Rancho Cucamonga, CA 91730
Phone: 800-461-0268
Fax: 909-476-1333
E-mail Us | Map & Directions