Effective January 1, 2017 this law goes in to affect for all worker’s compensation coverage no matter your renewal date.
Prior to AB2883 officers, directors and working partners or managing members of an LLC were not required to be covered by Worker’s Compensation, no matter what percent they owned. They could, however, opt in to coverage.
Effective January 1, 2017 all companies will be affected by AB 2883. This bill requires all officers & directors of a corporation, all general partners of a partnership and all managing members of an LLC to be covered by worker’s compensation coverage UNLESS they own at least 15% AND they execute a waiver excluding themselves from coverage.
AB 2883 applies to ALL policies, no matter the renewal date, effective 1/1/17. It also applies to companies that have chosen not to carry worker’s compensation because the only employees are corporate officers or general partners or members of the LLC if they have at least one officer, partner or member that owns less than 15% of the company. AND those who own 15% or more must sign a waiver to be excluded from coverage.
If your company has any employees (includes stockholders, officers, directors, partners and members) who own less than 15% of the company and they are currently excluded from your worker’s compensation policy OR your don’t have worker’s compensation coverage please contact Insurance Agent2000 at (925) 827-0510 immediately for a Workers Compensation insurance quote.