Worker's Compensation Insurance

12 Employers may want to discuss the option to include or exclude these individuals with a licensed commercial broker-agent. California Labor Code Section 3351 defines who is an employee and, therefore, who can be covered under a workers’ compensation policy. California Labor Code Section 3352 defines who may be excluded as an employee, and, therefore, whomay not need tobe coveredunder aworkers’ compensation policy. Whether a business is a sole-proprietorship, partnership, Limited Liability Company or a corporation, it is beneficial to develop a working relationship with a reliable, competent broker-agent who can explain coverage eligibility issues and present options based on the organizational model of a business. How IsWorkers’ Compensation Insurance Purchased? Employers must purchase workers’ compensation insurance from either a licensed insurance company or through the State Compensation Insurance Fund (State Fund). Employers may also have the option to self-insure for workers’ compensation. A commercial broker-agent can assist a business with purchasing workers’ compensation insurance from a licensed insurance company and can provide information regarding State Fund and self-insurance. Also, information regarding insurance companies that are licensed to sell workers’ compensation insurance and an online rate comparison of the top 50 workers’ compensation insurers can be accessed on the California Department of Insurance (CDI) website at www. insurance.ca.gov. State Fund is a state-operated entity that exists in order to transact workers’ compensation on a non-profit basis. State Fund competes with private workers’ compensation insurance companies for business and also operates as the insurer of last resort if private companies are not willing to offer workers’ compensation insurance.