Do you have relatives and/or volunteers who are working for you? Please take a look at the information below to understand how your Workers Compensation coverage applies to relatives and/or volunteers.
1. If you have a for-profit organization, then you technically can not have a volunteer. All work must be paid work. However, non-profit organizations can have volunteers.
2. If you are employing relatives, there may be a “Limiting and Restricting” endorsement on your current Workers Compensation policy that limits coverage for relative employees. As the owner, if you are a sole proprietorship, a husband and wife team, or a partnership, relatives who work for you are not covered if they reside in the same household as the employer and/or spouse, or if the employee is a child under the age of 12.
3. Unless the relative employee is specifically named in your policy, the list of relatives who are not insured include spouse, child by birth or adoption, stepchild, grandchild, son-in-law, daughter-in-law, parent, step parent, parent-in-law, brother, sister, stepbrother, stepsister, half-brother, half-sister, brother-in-law, sister-in-law, uncle, aunt, nephew, and niece.
4. If you are a corporation, LLC, etc., the payroll for any relative employee (per the relative list above) would have to be included in your Workers Compensation. However, if the relative employee owns a percentage of stock in the corporation, this does not apply. If a non-excluded relative employee gets injured, there could be serious financial and/or legal consequences.
If you have any questions regarding Workers Compensation coverage or would like a quotation, please contact our agency today. For your San Diego or Carlsbad Workers Compensation Insurance needs, please call (760)795-2002.