- August 20, 2018
- Posted by: oneplacefinancial
- Category: Tips
If you own a California-based business and employ workers for this purpose, you are legally required to purchase Workers’ Compensation insurance for your employees.
We’ve elaborated on some key aspects of this crucial commercial insurance policy to help you protect your employees and your business.
What Is Workers’ Compensation Insurance?
It’s a type of insurance coverage that provides medical benefits and wage replacement to workers who have been injured or become ill during the tenure of their employment. In exchange, they are required to give up their right to sue their employer.
Notice of this coverage plan must be posted in a high-visible site for the benefit of employees. If not, the employer may be liable to a civil penalty of up to $7,000.
When Should Workers Report Their Injury?
The injured employee must report their case by filling out a claim form provided by their employer promptly. If the employer remains ignorant of their employee’s injury for more than 30 days, the worker might lose their right to receive compensation benefits they were initially qualified for.
What Should Employers Do Once A Workplace Injury Is Reported?
Once an injury or illness occurs, the employer must carry out the following responsibilities:
- Provide the concerned employee with a workers’ compensation claim form within one working day of the report.
- Provide employee with a copy of the duly filled claim form within one working day of receipt.
- Forward the form along with a report to the claims administrator within one working day of the receipt.
- Authorize up to $10,000 for the required medical treatment.
Types Of Incidents That Are Covered
Workers’ Compensation plan covers a broad range of situations and injuries. It may insure against the following:
- Medical treatment costs (up to $10,000) resulting from the injury including surgeries, prescription medication and physician visits
- Temporary injury—Wage Replacement / indemnity benefits must be provided (determined by California laws)
- Permanent injury
- In case of death of employee, benefits provided to survivors of workers
- Retraining costs
Types Of Incidents That Are NOT Covered
Though the insurance policy protects workers against injuries resulting from their own or their employers’ carelessness, there is a limit to the extent of the coverage. Employee pay outs might be withheld if the injury was self-inflicted, sustained when not on the job, or while violating a law.
Does The Insurance Cover Long-Term Injuries?
Not just restricted to incidental injuries, Workers’ Compensation insurance covers workplace illnesses developed over time such as back issues, hearing problems due to constant on-site noise pollution or Carpal Tunnel.
How Can Employers Minimize The Risks Of Workplace Injuries?
Employers need to exercise an injury prevention program that must include workplace training, inspections and methods to remedy unsafe working conditions (if any).
What Are The Penalties Issued Against Uninsured Employers?
It is a criminal offense to neglect purchasing a workers’ compensation coverage. This misdemeanor is punishable by a fine of up to $10,000 or imprisonment for up to a year or both. In addition, the state issues around a $100,000 penalty against uninsured employers.
If you’re in or around Bellflower, California, and require professional assistance with purchasing the right commercial business insurance policies such as Workers’ Compensation, Business Owner’s Policy (BOP) and more, get in touch with One Place Financial.
You can contact us by calling at (562) 867-5200.