Accidents can happen at any time. California workers compensation insurance protects your business from lawsuits filed as a result of workers contracting illness or experiencing injury on the job; it also protects your employees from income lost due to an inability to work following an on-the-job illness or injury. It is a safety net for employee and employer alike.
It doesn’t matter who is at fault when it comes to a workplace injury. Employees are entitled to receive prompt treatment for on-the-job illness or injury, and California workers compensation insurance ensures that they will get it. By the same token, workers’ compensation insurance protects employers from being sued over on-the-job illness or injury contracted by their employees.
California Workers Compensation Insurance
In California and all across the country, workers’ compensation insurance provides these primary benefits to the employee:
Temporary disability benefits: payments received by the employee during the period he cannot work following on-the-job injury or illness
Permanent disability benefits: payments received by the employee if he does not recover fully
Supplemental job displacement benefits: vouchers that help pay for retraining or skill enhancement if the employee doesn’t recover and return to work
Death benefits: payments the employee’s dependents receive if the employee dies from on-the-job injury or illness.
Workers’ compensation insurance also provides the employer with immunity from court actions by the employee, in exchange for accepting limited liability. It is protection for employers if they are found civilly liable for employee injuries sustained in the course of employment.
If it sounds like a good idea, well—you’re right. But in California and most other states, workers’ compensation insurance is more than just a good idea. It’s mandated by law that employers carry work comp insurance… even if they have only one employee.