Answering Your Commercial Insurance Questions From Woodland Hills, CA

Commercial Insurance Myths

There are many misunderstandings when it comes to insurance. We have compiled a list of the most popular myths about insurance – and the truth behind it. Please be sure to talk to your insurance professional for more information.

Myth: If I have part time employees, I do not need workers compensation.

California law requires that a business with one or more employees has workers compensation insurance. Since part time employees count as one or more employees, workers comp is necessary. Whether your employees work one hour a week or over 40 hours a week, make sure they are covered on your workers compensation policy.

Myth: If I pay everyone on a 1099, I do not need workers compensation insurance.

How you pay a person does not determine whether or not they should be included on your workers compensation policy. The IRS has strict rules for what they consider an employee/determining who is considered an employee. For more information on the IRS’s guidelines for classifying an employee, visit IRS.gov