States levy heavy penalties on employers that fail to buy workers' comp insurance.  In Florida, the penalty is double the premium that would have been paid, with a minimum penalty of $1,000.  In New York, violation of state laws may result in criminal liability, or closure of business.  In California also, failing to have workers' compensation coverage is a criminal offense. The California Labor Code makes not having a workers' comp policy a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both.