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A Buy-Sell Check-Up
Requirement to Carry and Furnish Workers' Compensation Liability
FDIC Rules for Revocable Living Trusts
Requirement to Carry and Furnish Workers' Compensation Liability

Labor Code Section 3700 requires that all employers secure the payment of compensation for workers' compensation liability. Compliance with this statute is monitored by the Director of the Department of Industrial Relations. When the Director requests, an employer must furnish a written statement indicating the name of its insurer or the manner in which the employer has complied with this statute. This information must be supplied within 10 days after the request. Failure to provide the requested information can result in a fine of $500. The employer has the burden to show or prove that it has complied with the requirements of Section 3700. The failure to secure workers' compensation payments is a misdemeanor. The purpose of requiring an employer to secure workers' compensation coverage is to ensure that an employee is adequately compensated for injuries that arise out of, or occur in the course of, employment. Historically, the legislature has made it easy for workers to apply for and receive workers' compensation benefits. Employers are liable regardless of fault. The purpose of the law is rehabilitation, not indemnification for damages.

In exchange, the benefit system does not allow for tort damages, including pain and suffering. Liability for death benefits and burial expenses is also limited. Benefits are often payable without the need for litigation and an employer who secures compensation coverage is, with certain limited exceptions, exempt from lawsuits by the employee in any forum outside the Workers' Compensation Appeals Board (WCAB), which generally has exclusive jurisdiction over occupational injuries.

In theory, the balance achieved by this "exclusive remedy" doctrine is that the employer is freed from costly and time-consuming civil litigation and the employee receives swift and timely benefits to offset the potentially disastrous economic consequences of a disabling injury.