CA insurance questrion

CMHCCI said:

In re to CA and CSLB requirements...

A. Worker's Comp
I am unsure about when a company is exempt from Worker's Comp insurance. Only sole owner businesses? What if there are three owners (stock holders) and no other employees?


B. General Liability
I have not found any info on minimums or if it is even required by the state.

Click to expand...

I don't know about the workers comp, but CA does not required General Liability

Ca insurance question/Comp

There are attorneys out there who will give you reliable answers, but this is what I have learned:

Workers Comp. Roger is right; you don't need - and probably can't get - wc for the principals of your corp. But, if you are sub-contracting (I see you are electrical contractors) then many gc's workers comp policies will require them to produce comp certificates for their subs.
This can seem complicated. I am a gc, my comp policy says all my workers (including employees of all subs) must be covered. The insurers presume that some/most/all subs have employees, and they don't want to find out I have un-insured workers (mine or the subs') after a claim is filed.
So, my subs must provide me with a cert of wc insurance whether they have employees or not. They can usually get a "basic" policy (no employees) for $540.00/year from State Fund.

Ca insurance question/Liability

There are attorneys out there who will give you reliable answers, but this is what I have learned:

Why would you not want General Liability insurance? The state doesn't require it, but many customers will want you to carry it, and, more importantly, you need it to protect your assrts when stuff goes wrong. (And it does.)

Good luck.

I am certainly going to have GL insurance, i just wanted to make sure that I am meeting all requirements or minimums.

Worker's comp...two of the owners will be working in the field, are they still exempt from worker's comp, as far as CSLB is concerned?

more about ca insurance

OK, I see where you're going.

The reason I mentioned attorneys is that this is a poorly defined area of contractor license law, and often needs legal opinion on particular cases, depending on the duties and compensation of the owner(s).
The sole owner(s) of a business with no other employees may choose to claim exemption from workers comp, but the actual disposition of that exemption claim is subject to interpretation by both CSLB and the Insurer - sometimes after the fact! Hence the importance of legal advice going in.

All of this from my personal experience, hope you find it helpful.

And again, good luck.

Here's the scoop...

GL.. asked answered.

W/C is only required if you have EMPLOYEES. Officers slash share holders are NOT employees. So if you are a sole owner, partnership or corp you only need W/C if you have employees.

The other stuff about subs..... not my forte.

Note... if you have a C-39 Roofing license W/C is required whether you have employees or not. :thumbsup:

License Guru: I was hoping you would jump in on this one. I see you have already helped these guys w/qualifier questions.
I appreciate you putting your expertise out there.

Thanks for the input.

Our insurance agent recommended "personal disability insurance" instead of worker's comp for us. This is available at a much lower cost.