We have paused offering personal lines products to NEW customers because of circumstances beyond our control in the insurance market. We will continue to serve our existing clients and do our best to secure coverage. Such products include homeowners, private automobiles, umbrellas, landlord coverage, renters, and other personal property insurance. Thank you for understanding!
We wouldn’t have gone into business if it weren’t for California Contractors. We started and built our business around helping these folks cover their bases when it comes to insurance and prepping for audit season. Watch the video and scroll through these for tips to learn more.
1. Ensure you have proper time cards including:
- Employees name
- Hourly wage
- The trade they’re performing
- The time they started and ended work
- Lunch out and lunch in times
Tip: If using an app, make sure you also print out those records for your auditor.
2. To avoid getting charged for a subcontractor’s worker’s compensation insurance:
Make sure you have proof of their workers comp insurance. *If exempt, print a copy of their license showing they’re exempt at cslb.ca.gov.
3. Avoid $50,700 charges
In 2017, the exclusion rules changed. Be sure you have the proper exclusions on file because if you don’t and you get audited, expect a minimum $50,700 charge for payroll against your work comp premium for each member that’s no longer excluded, eek!
Today, here’s what you need to be/have in order to be excluded:
- Corporation officers must own 15% or more, with a valid waiver form on file with a workers comp carrier
- If an LLC, you need to be a managing member
- If a partnership, you must be a qualifying partner
4. Be aware of these class codes you can’t split:
In other words, if an office staff person works 90 percent in the office and just 10 percent on a construction site, they will be reclassified to a construction trade and you will be charged a difference on the premium. These class codes are:
a. 8742, outside salespeople
b. 8810, clerical office staff
These team members cannot visit job sites, deliver materials to job sites, etc. or they will be reclassified.
Fusco & Orsini is here to help CA Contractors. We keep you posted and prepared in advance of audits with email reminders and we’re always just an email or phone call away.