New Technology, Old Laws. You Still Need To Be Insured


Prepare for the best expect the worst. A few words carry that condensed wisdom that you need to take into account, especially when you are running a successful business. Disaster could strike at any moment and force you to shut your doors, fire employees and loos years of your life’s-work. When the going gets tough, it might seem tempting to cut costs by forgoing insurance, whoever maintaining a business insurance policy is always highly recommend by experts.

News has spread that Uber is fighting a direct dispute with the state of California to decide if Uber drivers are employees or contractors. Despite labor laws being antiquated (some of them where passed decades ago) the need to understand the importance of being properly insured is essential, even if you are company that operates in the new smartphone world.

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In the Uber case, a class-action lawsuit has been filed to decide whether Uber drivers should be considered as independent contractors or employees. This has a big implications. The basic test for whether a worker is an employee or a contractor is whether the employer retains all “necessary” control over the worker. In the case of Uber or Lyft or the new “Sharing Economy” companies this is still to be decided by the courts.

However, you might not want to enter into a costly legal battle. If your business has employees, you are required by state law to pay for certain types of insurance. The top three employee insurance requirements are Workers Compensation Insurance, Unemployment Insurance Tax and Unemployment Insurance Tax.

For Workers Compensation Insurance you need to cover your business through a commercial carrier, on a self-insured basis, or choose the option to contract the state Workers’ Compensation Insurance program. There are pros/cons to each option and often depends on the state program and different business.

Technology is evolving rapidly and finding the best insurance nowadays is becoming easier. Streamlining the process to find and hire the right insurance for your business can be as easy as calling an Uber.

The specifics of your coverage depend on your profession, but being on the safe side is always recommended. CoverWallet has the right intelligence to give you an assessment on what you need in each specific industry, so you can minimize your exposure with personalized insurance protection.

We’ll walk you through it and get your free quotes, with no commitment to buy.

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