Workman's Compensation Protects The Company that provides the work and it's worker's, NOT the client it is servicing.

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Who does it cover?

Let's be clear on this one, it seems to create confusion amongst many of our clients. Workman's Compensation was created to protect certain employees from loss of wages due to work-related injury. It may include coverage for employee related expenses in all or any combination of the  following sectors:

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• Medical

• Temporary

• Permanent

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These type of policies are designed to protect the Service Provider and it's associates, not the Company it is servicing. So if you are a company and you hire an outside vendor, and one of the company employees, contractors or associates gets injured on your property while providing the service, the worker will need to file a claim with it's EMPLOYER or COMPANY it works for, not the company it is servicing. An injured worker from our company has no recourse to request coverage or file a claim against a client we provide service to. Furthermore, we are NOT employees of any client we service, we cannot be added to any of your own exiting insurance policies; Workman's Compensation, General Liability, etc. 

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TO protected against possible lawsuits, YOU and the VENDOR should have a General Liability Insurance Policy

If you need protection from potential lawsuits from any outside vendors then a General Liability Policy is a must. In this case, it is better if both the client and the vendor have a policy in place in case of some type of dispute  over damages caused by the vendor while providing services or products to the client. Here's some clarity:

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• If the vendor damages your property while providing service, the vendors GL insurance guarantees payment for the damages; with limits of course.

• If the vendor damages the image of your company through false advertising, the vendors GL insurance guarantees payment for the damages; with limits of course.

• If as a result of a CLIENTS negligence a vendor suffers an injury, YOUR General Liability Insurance will cover YOUR COMPANY from damages.

• If as a result of OUR negligence our associate gets injured while working on your property, OUR GL insurance covers medical costs and protects US from a lawsuit. 

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Workman's Compensation Requirements

In the State of California ONLY business with 5 or more employees are required to have a Workman's Compensation Policy in place. This means that large companies that have hundred's of thousands of INDEPENDENT CONTRACTORS like Amazon, eBay, Uber and the like, are NOT required to cover them though any Workman's Compensation Policy. When's the last time you asked your hired ride-sharing driver for their Worker's Compensation Policy? Probably never, it just doesn't make any sense. Not only that but smaller one man S-Corp or C-corps also do not have to legally carry such a policy. Also excluded from this requirement are sol-proprietors and LLC owners, directors, executives, and members. In  situation where such a policy is either NOT warranted, needed, wanted, or required the company or individual can create their own internal Medical, Injury and disability policy as it sees fit, without any interference, auditing or guidance from any outside insurance or other government agency. 

 

What should a client request from a vendor?

A client can request that it's vendors have such a policy, but in many cases it is not legally required to do so. After all, it ONLY protects the VENDOR and it's working staff not the CLIENT. An employee, contractor, or LLC member can and should request some kind of coverage if the company it intends to work for is not required to have such a policy. If a client is worried about potential lawsuits brought against it by an outside vendor as a result of injury against, then requesting a General Liability Policy from the vendor is recommended. 

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What coverage does Elegant Empire LLC Provide?

We've been providing cleaning service throughout Ventura County since 2011 and have not had ANY work related injuries from any of our staff. And although we are NOT required to carry a State funded Workman's Compensation Policy, we have our own Self-funded policy that offers a competitive and comprehensive coverage in the rare event one of our associates suffers some kind of work-related injury. In addition, if for whatever reason you need us to provide a State-Funded Policy, we can do that as well at an additional rate of 15% added to all the labor provided during the time we do business. 

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Furthermore, we have our own Self-Insured Retention fund our General Liability Policy. We chose this route as a way to have better control over the specific instances that warrant coverage and the amount of coverage.   Based on our internal records since 2011, and after completing thousands of cleaning jobs,  the largest claim we've ever had to pay out was about $175 for a faucet that was broken while our staff was cleaning the area. We're still not sure why a local cleaning company would need millions of dollars in coverage? If for whatever reason you require a State Approved GL Policy that covers $1,000,000 or more we can provide that as well and list your company as Additionally Insured.