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I have a client who has 3 businesses. He is a general contractor, but never directly hires employee's to do construction. He has no WC insurance for any of the 3 companies, as it is owner-only pay.

In the new venture (less than one year), he has one NEW full time employee, $20/hour, who will be assembling wood framing in a warehouse. He has two clerks, $16/hour (8010, full time) as well. HE IS NOT using his Contractor's license in this one venture. He is 50/50 owner with another person.

The CA WCIRB told me it was code 5403.

Where can I get this company WC insurance outside of State Fund, if at all possible. Can it be a different Class Code to make it easier?

Thanks.
Erica Phillips
Benefits Wheel Insurance Services
San Diego (858) 217-5802

What class code do you want to use instead? To me, Carpentry NOC or Commercial Building Construction - both 5403 - is the appropriate code. I can't think of one more appropriate.

And honestly, I don't see any private carrier looking to write a monoline WC policy on a high hazard, low or minimum premium operation, with no prior coverage. I think you're stuck with CA State fund, unless the GL carrier can write the WC as well - if they want to.

If you do this, make sure you file the WC Officer Exclusion form, or his pay will get picked up - assuming these three are all corporations. Also - you might want to prepare yourself for common ownership issues with the other two companies.

Wow. This risk is fraught with problems. 3 businesses GC. His "indirect" employees better produce work comp certs. State Fund is your only hope. I cannot imagine another carrier wanting to take on the potential problems associated with 3 separate business exposures.