DISABILITY INSURANCE ELECTIVE COVERAGE PROGRAM
California's Disability Insurance Elective Coverage
(DIEC) program provides benefits to eligible business
owners and self-employed individuals suffering a loss of
income when they are unable to perform their usual work
due to illness, injury, or pregnancy.
The DIEC program was created by the California State
Legislature in 1962 through the direct actions of a state
legislator acting on behalf of a constituent's unfortunate
circumstance. The constituent was being forced to close
his business, as he was without any disability coverage
to help offset the expenses during a critical illness.
Through the legislator's concerned actions, California
became the only state to offer a state-sponsored
disability insurance program to business owners and
self-employed individuals on an elective basis.
Today this program serves as a safety net to those
small business owners, entrepreneurs, or self-employed
individuals who make up a large portion of companies
doing business in California.
Who Can Elect to be Covered by DIEC?
Any self-employed individual who receives the major
part of his or her income from the trade, business, or
occupation in which he or she is self-employed.
Individual proprietors and general partners are eligible
to apply for coverage. It is not required that all active
general partners be included in the election. A
general partnership also includes a husband and wife
co-ownership in which both spouses are active in the
operation and management of the business. Limited
partners and corporate officers are not eligible since
they are considered to be employees subject to the
mandatory provisions of the California Unemployment
Insurance Code (CUIC).
• 	 You must own your own business or be self-
• 	 You must have a minimum income of $4,600
• 	 You must possess a valid active license, if required
by your occupation.
• 	 You must be able to perform all of your normal duties