All Osta employees are covered under comprehensive workers' compensation insurance policies maintained by each subsidiary company. This insurance protects both our team members and you as the property owner, eliminating your liability for work-related injuries occurring during our projects.
Workers' Compensation Protection:
What Workers' Compensation Covers: Medical treatment for work-related injuries or illnesses, temporary disability payments replacing lost wages during recovery, permanent disability benefits for injuries causing lasting impairment, vocational rehabilitation if the injured worker cannot return to their previous role, and death benefits to surviving family members in fatal accident cases.
How Coverage Works: When an Osta employee is injured while working on your property—from minor cuts requiring first aid to serious accidents requiring emergency care—they report the injury immediately to Osta management. We file a workers' compensation claim with our insurance carrier, coordinate medical treatment with approved providers, and handle all claim administration, paperwork, and follow-up.
The injured worker receives necessary medical care and wage replacement benefits directly from the insurance carrier. You have no financial responsibility, no interaction with claims processes, and no liability for medical costs, lost wages, or disability benefits.
Why This Matters:
Property Owner Liability: When workers are injured on your property, liability typically falls on their employer through workers' compensation insurance (required for virtually all California employers). However, if the employer is uninsured, underinsured, or has improperly classified workers as independent contractors, liability can shift to the property owner who engaged the services.
This creates scenarios where homeowners face:
Direct responsibility for medical bills (emergency care, surgery, ongoing treatment)
Lost wage claims from injured workers unable to work
Permanent disability settlements for injuries causing lasting impairment
Legal defense costs if injured workers file lawsuits
Liens placed on property to satisfy judgments
These liabilities can reach hundreds of thousands of dollars for serious injuries—far exceeding the money saved by hiring cheaper unlicensed contractors.
Independent Contractor Misclassification:
Many contractors classify workers as independent contractors rather than employees to avoid workers' compensation costs, payroll taxes, and employment obligations. This misclassification is illegal under California law but remains common due to significant cost savings.
When misclassified contractors are injured, they have no workers' compensation coverage because they're classified as independent contractors, and independent contractors are responsible for their own insurance. However, if injured contractors sue claiming they were actually employees (which California courts frequently determine), property owners can become liable as "special employers" who benefited from the work.
Legitimate independent contractor relationships require the contractor to:
Maintain their own tools, equipment, and business operations
Control how, when, and where work is performed
Perform work that's outside the usual business of the hiring party
Have established business serving multiple clients
Most "independent contractors" in home services fail these tests and are legally employees—creating liability for property owners when injuries occur.
How Osta Protects You:
Direct Employment: All Osta professionals are W-2 employees with proper employment classification, eliminating misclassification concerns.
Verified Coverage: We maintain active workers' compensation policies covering all employees with no coverage gaps, exemptions, or limitations.
Immediate Claim Filing: Injuries are reported immediately with prompt claim filing, ensuring timely medical treatment and preventing coverage disputes.
Independent Insurance: Our workers' compensation coverage is entirely independent from your homeowner's insurance—our claim never impacts your policy, rates, or coverage.
Documentation: We provide workers' compensation insurance certificates upon request, showing coverage effective dates, policy numbers, and insurance carrier information.
What Happens in Actual Injury Scenarios:
Minor Injuries: Small cuts, scrapes, or minor issues are treated with first aid by our team. If medical attention is needed, the employee visits an approved urgent care clinic, files a claim, receives treatment, and returns to work once cleared—all at zero cost to you.
Significant Injuries: Serious injuries trigger emergency response through 911 if necessary, immediate claim filing with our insurance carrier, coordination of emergency room or hospital treatment, and case management throughout recovery. Injured employees receive wage replacement benefits during recovery, and we manage all medical and administrative processes without involving you.
Fatalities: Though rare, fatal accidents on job sites create enormous liability. Workers' compensation death benefits provide financial support to surviving family members without litigation against property owners. Uninsured or misclassified contractors leave families pursuing wrongful death claims directly against homeowners, creating devastating financial and emotional consequences.
Verification and Due Diligence:
When hiring any contractor, protect yourself by:
Requesting Certificates of Insurance: Ask for current workers' compensation insurance certificates showing coverage for all workers who will be on your property.
Verifying Coverage: Contact the insurance carrier listed on the certificate to confirm coverage is active and current (carriers provide free verification services).
Checking License Status: Licensed contractors are required to maintain workers' compensation coverage as a licensing condition—license status on the CSLB website includes verification of insurance compliance.
Avoiding Cash Deals: Contractors requesting cash payment, proposing to work "off the books," or offering discounts to skip insurance are definitively uninsured—this is how uninsured contractors avoid detection.
Insisting on Contracts: Written contracts should specify that the contractor maintains workers' compensation coverage and indemnifies you from all liability for worker injuries.
Red Flags: Contractors claiming "we're very careful so insurance isn't necessary," explaining they don't need coverage because they work alone, or suggesting your homeowner's insurance covers their injuries are operating illegally and exposing you to massive liability.
Osta's Legal Compliance:
California Labor Code requires every employer with one or more employees to maintain workers' compensation insurance—no exceptions. Penalties for noncompliance include $10,000 minimum fines, stop-work orders, criminal misdemeanor charges, and personal liability for owners and officers.
We comply fully with these requirements because they protect our team members, protect our customers, and reflect our commitment to legal, ethical business operations. The cost of proper insurance is built into our pricing structure—you're paying for protection, not subsidizing our attempt to avoid legal obligations.
When accidents occur on your property, you should feel confident knowing our insurance responds, our team receives proper care, and you face zero financial liability or administrative burden. That confidence is worth the modest premium difference between legitimate licensed contractors and those cutting corners on insurance coverage.