Timothy Cline Insurance Agency, Inc.
Building Owners »
Introduction
Workers’ Compensation is required by law. building owner that has employees on the payroll must maintain a workers compensation policy. But what if the owner does not have any employees and all work is contracted? Should the owner still maintain a workers compensation policy? The answer is a resounding “yes.”
This scenario is all too common. If a building owner ever hired a non licensed contractor, or hired a licensed contractor who does not maintain an active workers compensation policy at the time of loss, then the owner could be deemed to be the employer. If that contractor misrepresented the fact that they maintained a workers compensation policy, and an accident occurs while on the job, the state of California could still consider the owner to be the employer of that injured worker, and liable for all medical payments that result. The law also prohibits the owner from entering into a contract to avoid workers’ compensation insurance.
With this in mind, it is important for all building owners, whether big or small to maintain worker’s compensation coverage. Even with a workers compensation policy in effect, it’s still imperative that owner contract with ONLY licensed contractor with a workers compensation policy in force. The owner should request a Certificate of Insurance evidencing the workers compensation coverage and such evidence should be in the owner's possession prior to the work commencing.