March 18, 2013
In California, all employers are required by law to carry workers compensation insurance, even those who only have one employee. Better known as workers ‘comp’ insurance, these policies were created to protect workers in case an injury occurred on the job or if they developed an illness because of the job, and also helps to protect the business from potential lawsuits filed by the injured employee, which could result in a large loss for the business.
If a business fails to carry workers comp insurance, California doesn’t take it lightly. It is considered a misdemeanor crime and is punishable by up to one year in jail, $10,000 in fines, or both in severe cases. The truth is, there’s really no good excuse to go without workers comp insurance if you own a business, and instead of viewing it as an added expense, it’s really only another way of protecting your business and your investment. Every business should have workers comp insurance, and it’s unfortunate that every state doesn’t require it by law. Established in 1910, California workers comp insurance actually motivated several other states to create their own workers comp laws and policies.
Purchasing workers comp insurance is actually pretty simple. Your insurance agent can provide you with several quotes and provide you with different options until you feel comfortable with your workers comp insurance. The price of carrying workers comp insurance is going to vary company to company, and no two policies are exactly alike, so it’s difficult to say what your premium is going to be until you actually get a quote and figure out what will suit your business best.
If you own a business, and one of your employees gets injured while working, workers comp insurance will pay for their lost wages, medical expenses, and any other financial expense incurred as a result of being injured or from having to be off of work. This insurance enables employees to continue caring for themselves and their families.
Not only does workers comp insurance pay for worker’s associated expenses when they’re injured at the business location, workers comp insurance in California even pays for injuries that happen off the job site when relevant business related activities are in progress.
The amount of benefits an employee receives varies based upon the injury sustained and its severity. If a death occurred, workers compensation also pays death benefits to the employee’s family.
Not only does workers comp help provide peace of mind for employees, it also helps protect the business from potentially losing everything they’ve worked for if someone was injured or fell ill due to the employer’s fault. If you’re thinking that it’s not a business’s responsibility to pay for a person’s medical bills or living expenses if they get injured, then consider how ‘lawsuit happy’ people are nowadays; lawsuits would be filed left and right against businesses, and workers everywhere would be ‘injuring’ themselves to get a free ride, so in reality, workers comp protects everyone involved and promotes a safer, sounder commerce.