What Happens If You Don’t Carry Workers’ Compensation Insurance?

California business owners understand the importance of protecting their employees and operations. One of the most critical ways to do this is by carrying workers’ compensation insurance. The consequences of not having such a policy can be severe, impacting finances, reputations, and even the ability to operate.

Legal Risks and Penalties

In California, workers’ compensation insurance is not optional; it’s required by law for nearly all employers, even if you have just one employee. Failing to carry this coverage can result in significant legal penalties. The state may impose fines, issue stop-work orders, or even pursue criminal charges in some cases. These penalties are designed to ensure that employees are protected if they’re injured on the job.

Financial Consequences

Without workers’ comp insurance, your business becomes directly responsible for covering the costs of any work-related injuries or illnesses. This can include medical bills, lost wages, and rehabilitation expenses. These costs can quickly add up and may threaten the financial stability of your business. Additionally, you may be sued by injured employees, leading to further legal expenses and potential settlements.

Contact Us

At SF Insurance and Financial Services in CHULA VISTA, CA, we help employers navigate workers’ compensation requirements and secure the right coverage for their needs. Our team can assess your risks, explain your obligations, and find solutions that protect your employees and your business. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.