If an employee suffers a work-related injury, then they should expect financial compensation. This usually comes to them through your Workers’ Compensation insurance policy. In fact, some states, like California, require employers to purchase Workers’ Compensation Insurance. Workers’ Compensation Insurance protects both employees and employers. It protects you and your business from legal liability because when it comes to workplace injuries, the fault does not matter.
Workers’ compensation provides wage replacement and medical benefits insurance to employees in the event of an on-the-job injury. In return, the employee relinquishes any right to sue his employer.
Workers’ compensation insurance also provides disability payments to an employee for the time that they are out of work. It typically pays around two-thirds of their regular salary and covers any hospital or doctor’s bills. It may also pay for rehabilitation or retraining depending on the details of the plan.
An employee is entitled to workers’ compensation even if their carelessness causes the injury, but there are some limits. If an employee comes to work intoxicated or under the influence of illegal substances, then their injuries won’t be covered by workers’ compensation. Some other exclusions include:
- Self-inflicted injuries
- Injuries suffered while committing a crime
- Accidents occurring while not on the job
- Injuries sustained while violating company policy
Coverage also includes injuries that occur as a result of misuse or overuse. If an employee’s task requires a lot of bending, resulting in back pain, the employee is entitled to coverage. Injuries do not always have to occur as a result of an accident.
Coverage includes injuries sustained outside of the job, provided they occurred during a work-related activity. Work-related errands travel, and work-sponsored social engagements fall into this category.
Why Do I Need Workers Compensation Insurance?
According to the law, employers have a legal responsibility to protect employees from injury, however, accidents can and will happen. Therefore, most states, including California, require businesses to cover their workers. Excluded from this requirement are instances of sole ownership, but all other types of business, even if they only have one employee, must obtain coverage.
Failing to have workers’ compensation in the state of California is a federal offense and could result in one or all of the following:
- Imprisonment up to one year in the county jail
- A penalty of at least $10,000
- State issued fines of up to $100,000
Even without an incident, employers run risks if they do not purchase Workers’ Compensation insurance. Failing to provide workers’ compensation can result in charges filed.
How Can I Get Workers’ Compensation Insurance?
You must obtain Workers’ compensation insurance as a separate policy. In-home business and business owners policies come as package policies and do not include workers’ compensation or unemployment insurance.
Post Insurance offers workers’ compensation insurance, along with all types of commercial business insurance. For a free quote call us today at (800) 262-9998 or connect with us online.