Workers' Comp Insurance: The Most Important Tool

Law360, New York (February 22, 2012, 1:05 PM ET) -- A contractor's failure to maintain its workers' compensation coverage can have disastrous consequences. Unless the contractor is exempt from having workers' compensation insurance, its failure to maintain such insurance results in an automatic suspension of its license in California. (California Business & Professions Code Section 7125.2.) This, in turn, can prevent a contractor from recovering payment for work done during the period in which the license was suspended.

Section 7125.2 states: "The failure of a licensee to obtain or maintain workers' compensation insurance coverage, if required...
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