When it comes to running a business, one of the risks you need to be prepared for is the possibility of employees getting injured or ill while on the job.
Sometimes, no matter what health and safety precautions and policies are in place, accidents happen, and you may need to provide financial assistance or compensation for injured or sick employees. Depending on the number of employees or workers affected and the extent of injuries or severity of the illness, hospital and related expenses can become expensive really fast.
But, of course, there is a solution to this dilemma: workers’ compensation insurance.
Protection for Workers On-the-Job
Workers’ compensation insurance, commonly known as workers’ comp, is coverage for medical expenses and a percentage of lost wages for employees who get injured or ill while working. The insurance coverage here also includes employee rehabilitation and death benefits.
However, to claim workers’ comp benefits, an employee must have gotten injured or ill because of their role, duties, or employment. Workers’ comp insurance may cover injuries resulting from lifting heavy equipment, slips and falls on wet or oily surfaces, or getting injured in a fire or explosion in the workplace or onsite.
If an employee gets injured while not performing any role related to their employment, such as playing catch with friends on their day off, they won’t be covered by workers’ compensation insurance.
Workers’ Comp in California
Like most other states, California adopted workers’ compensation laws way back in the 1910s. Workers’ compensation is based on a no-fault system. This means that an injured employee is not required to prove their injury or illness was caused by someone else for them to receive workers’ comp benefits for an on-the-job injury or illness.
And since nearly all California workers are protected by the workers’ compensation system, employers and employees should be familiar with and understand workers’ compensation insurance.
Without this coverage, you put your business at a high financial risk, which can mean you facing a lawsuit for workplace injuries, illness, or death. You may also be penalized for breaking the law.
The cost of workers’ compensation insurance will depend on specific characteristics or factors concerning your business, such as your state, payroll, and claims history.
Need help deciding or want a quote online?
Please contact us directly at 818-248-4500 to speak with one of our insurance advisors who can help you find the optimum coverage for your business and employees.