How Does Workers' Compensation Work

How Does Workers’ Compensation Work

Strong Tie Insurance December 4, 2018 Workers Compensation

Workers compensation is a type of insurance program designed to benefit both employers and employees. This program removes the need for expensive lawsuits and counter lawsuits, which are usually stressful and time-consuming. It guarantees compensation to workers who are injured or fall ill while performing their duties, regardless of fault. With this program, workers receive the essential compensation they require to recover from an accident or illness, and the employer saves a lot of money and time that could have been used in fighting lawsuits.

Every state has a workers’ compensation program with different rules that stipulate when an employer is supposed to acquire such insurance. Generally, in California, a workers’ compensation insurance provides all covered workers with indemnity (the necessary medical and wage replacement) that arise out of injuries or illnesses that occur during the normal course of business.

All firms in California that have four or more workers are by law required to purchase a workers’ compensation insurance policy — either from a private insurer or from the California State Compensation Insurance Fund. However, large businesses can be self-insured, and they are excepted from purchasing California Workers’ Compensation Insurance.

California Workers compensation is regarded as a no-fault insurance. This means that the program facilitates all eligible claims and the employee who has sustained injuries does not have to take the conventional court means of proving negligence in order to be compensated. In exchange, the worker is barred from suing the employer from work-related injuries or illnesses.

Covered Injuries

California Workers Compensation is meant to compensate workers who have sustained work-related injuries and illnesses while undertaking their duties. Work-related injuries do not have to be necessarily caused by a single accident. Injuries caused by factors such as continued exposure to health hazards such as chemicals, too much light or heat, repetitive stress, etc. in the workplace may prompt a workers’ compensation claim. To learn more about all the injuries covered with this program, call us today and speak to our representative.

Claim Process

Both the employers and their employees have several obligations under the California Workers Compensation Program. All employers with four or more employees are required by law to carry worker’s compensation insurance. This process is achieved by purchasing the insurance from a licensed broker registered in the State of California or through self-insured. If an employer refuses to carry the required coverage, he or she will be fined and may face an employee lawsuit in court.

An injured employee is required to report to their employer any injury or illness related from work. This may be done through a specific form that needs to be duly filled and submitted to the employer. The employee should report the injury or illness within a specified period of time. If he or she fails to do so within the stipulated time, the employee risks the rights to claim for compensation. The employer should provide his or her employees with pamphlets or fact sheets that delineates their rights and responsibilities that the employees should review. If you are confused about your rights and obligations, do not hesitate to call us and find out more about the California Workers’ Compensation Program.