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Consequences for uninsured employers

If you are a business owner in California, failing to have insurance to cover workers' compensation claims could cause serious trouble for you and your company. Here at Sacks & Zolonz, we understand the difficult position your company could be in if you are unprepared for a claim, and we want to help mitigate the consequences.

Not carrying workers' compensation insurance could result in a significant fine, but even that financial hit may not be your greatest concern. You or your company may face a criminal prosecution if an injured employee pursues a lawsuit, and the effects could be so dire that you lose your business. Even if the consequences are not that severe, you could face attorney fees for your injured employee in addition to a 10 percent penalty for not carrying the proper insurance in the first place. These additional expenses may end up costing you more than insurance would have. While you may then choose to obtain insurance, coverage may not help you with the current case.

If you are caught in a lawsuit for not having proper insurance, your problems could extend beyond the immediate issues in the case. You will likely need assistance to guard your company's current assets and avoid further punishment. You may also need help with establishing a proper standing with the government's workers' compensation agencies, including the California Labor Commission, to ensure that you do not face fines or prosecution in the future. You can find more information about companies who lack proper workers' compensation coverage on our web page.

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