Insurance agent Bernhard Hoehle presented a talk on Workman’s Compensation. This insurance is a must-have for almost any employer – even with only one employee. There are certain exceptions. For example, coverage for sole owners and direct family members is optional. Occasional domestic workers in the home may be covered under your Homeowner’s Policy. However, it is best to consult with your insurance agent to avoid heavy penalties for non-compliance. For instance, roofers must carry Worker’s Comp even if they do not have any employees. Failure to obtain required coverage can result in a fine of either twice the avoided Worker’s Comp premiums or $1500 per employee. In addition, the Division of Labor Standards can issue an order prohibiting the use of employee labor until coverage is obtained. Failure to comply with the order is a misdemeanor punishable by jail for up to 60 days and/or a fine of up to $10,000. If an injured worker files a Worker’s Compensation claim and a judge finds the employer did not have the required insurance, the employer may be assessed up to a $10,000 fine per employee on the payroll at the time of the injury (not to exceed $100,000).
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