Hastings Communications and Entertainment Law Journal


This article is an insightful discussion of the factors a California "loanout" corporation must weigh in determining what type of workers' compensation coverage, if any, it should purchase. Certain "loan-out" corporations may, according to statute, elect not to purchase coverage. Corporations so electing assume numerous risks in not purchasing coverage and may have unexpected liability to injured persons. The authors point out certain, less expensive, coverage plans may be appropriate for some "loan-out" corporations in lieu of complete or no coverage. They also reveal several ways that a "loan-out" corporation may avoid liability if it purchases partial coverage or does not purchase coverage.