In California, Workers’ Compensation Insurance is mandatory for businesses to carry. However, this type of insurance can be confusing. The following is a breakdown of some of the important parts to help you have a better understanding.
Workers’ Compensation insurance is a type of coverage that provides wage replacement and medical benefits to employees inured in the course of employment in exchange for mandatory relinquishment of employee’s right to sue their employer. The general rule of thumb is that all businesses in California with employees need Workers’ Compensation insurance. However, the requirements vary state to state. The following are the basics of Workers’ Compensation in California:
What types of incidents are and are not covered by worker’s compensation?
This type of insurance is designed to cover injuries that results from employee’s or employers’ carelessness. The range of injuries and situations covered is broad, but just like everything there are certain limits. Certain states can impose drug and alcohol testing on the injured employee, and can deny the employee workers’ compensation benefits if the tests come back positive for drugs and/or alcohol. Pay out might also be denied if the injury sustained by the employee was self inflicted, a law was being violated at time of injury, or the employee was not on the job when the injury occurred.
What type of expenses does workers’ compensation insurance cover?
Worker’s compensation can cover:
- medical care from the injury or illness
- replacement income
- costs for retraining
- compensation for any permanent injury
- benefits to survivors of workers who are killed on the job
Does workers’ compensation cover long-term and permanent injuries?
Yes. Workers’ compensation is not limited to just incidental accidents. It can also cover problems and illnesses that are developed over a long period of time – for example, carpal tunnel or back problems from some sort of repetitious movement on the job can be covered by works’ compensation.
To learn more about what workers’ compensation covers, how it protect your business, and other types of commercial coverages your business can benefit from – call one of our talented commercial insurance agents at 800-800-5199 or visit us online at www.peakesinsurance.com.