Legal Question in Business Law in California
Business Bankruptsy
We were forced to file bankruptsy as a result of our largest client going bankrupt.
I need to start a new business, and am wondering since my last business went under, does the Workers Comp carrier ''state fund'' have to provide me with insurance for a new company or can they say no?
1 Answer from Attorneys
Re: Business Bankruptsy
I believe so, but you should ask them. Also, I think the workers' comp. insurance market is currently sufficiently competitive that your business bankruptcy should not be a barrier to insurers being willing to work with a new entity that you form, especially if the new entity is adequately capitalized. My answer might be different if you had a past history of workers' comp. violations, trying to go self-insured, or any other signs of inability or unwillingness to run businesses according to law and regulation. This answer is based primarily on my experience as a business owner rather than legal knowledge or principles.
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