EmploymentQuestion 1011 of 1605
Instead of buying a workers' compensation policy, a very large employer may satisfy the coverage requirement by:
a.Simply promising in writing to pay any claims
b.Paying a flat annual fee to the CSLB
c.Becoming a certified self-insurer after obtaining approval and posting security
d.Requiring each employee to buy personal health insurance
Explanation
Labor Code §3700(b) allows an employer to self-insure if it obtains a certificate of consent to self-insure from the Director of Industrial Relations, which requires demonstrating financial strength and posting a security deposit. Self-insurance is realistic only for large, financially stable employers.
Law Reference: Labor Code §3700(b)Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)