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The Importance of Workers’ Comp Coverage for Real Estate Professionals
Posted on: November 20, 2015 by Newmark Insurance
The Department of Industrial Relations (DIR) is coming down harshly on employers who fail to provide sufficient workers compensation coverage for their employees. While autonomously employed people are required to carry their own coverage, being caught without it can lead to severe financial penalties. In order to protect yourself and your firm, ensure you are equipped with Real Estate Workers’ Compensation.
The DIR is cracking down on business owners and independent brokers who ‘cut costs’ on their workers’ compensation coverage, according to Insurance Journal. Penalties applicable to offenders include hefty fines and even jail time.
California Labor Commissioner Julie A. Su is heading the operation and works to track down and cite offenders. Su states “The largest percentage of citations that my office issues is for failure to secure workers’ compensation as required.”
The Department of Industrial Relations also noted that if an agent of an uninsured broker gets injured while working and cannot collect the workers’ compensation benefits to which they are entitled, the Division of Workers’ Compensation will attempt to collect from the broker on behalf of the Uninsured Employer’s Fund.
In addition, if the business is caught without workers’ compensation, operations will be coerced into being halted until proper coverage can be proven. With this, a civil citation will ensue that can cost the business up to $100,000 in fines.
What’s more, real estate brokers who require agents to carry their own workers compensation policy, when they are actually employees of the brokerage, can be held responsible for reimbursement charges from medical expenses, law suits, and more from injured workers.
In conclusion, Su explains, “We will enforce all of the laws that are on the books to protect the honest employers who are really struggling to compete against the underground economy and to protect working people and make sure they are paid the wages they earned.”
The consequences of not carrying proper workers’ compensation insurance can devastate the financial health of a business, as well as its reputation. At NewMark Insurance Services, we understand the risks associated with not properly protecting your employees. Our customizable policies can be tailored to meet the specific needs of your brokerage and agents. To learn more, we invite you to contact us today at (855) 777-6549.