Workers’ Compensation insurance is a type of insurance that employers purchase to cover employment-related injuries and illnesses. California Workers’ Compensation is a no-fault system for injuries connected with employment. Whether they are specific injuries or a disease disabling conditions, employers are required to pay for this insurance to cover all of its employees.
Workers Compensation insurance serves two purposes: it assures workers get medical care and compensation for a portion of the income they lose while they are unable to return to work and protects employers from lawsuits by workers who were injured on the job.
State laws and court decisions control the program in that state and in most states, Workers’ Compensation insurance is required as soon as you have one more employees who aren’t the business owner or partner.
Medical Care – Paid for by your employer to help you recover from an injury or illness caused by work. An injured worker is entitled to reasonable medical treatments.
Temporary disability – These are payments you receive if your injuries prevent you from doing your usual job while recovering. Temporary disability pays two-thirds of the gross wages you lose while you are recovering. These payments begin once your doctor says you are unable to perform your usual job responsibilities for more than three days or you get hospitalized overnight.
Permanent disability – If you are determined to be permanently unable to return to the job that you had held prior to your injuries, or you have any impairment that remains you are entitled to a weekly permanent disability benefit.
Supplemental job displacements benefits – An employee injured between Jan. 1, 2004 and Dec. 31, 2012, whose injury causes permanent disability and who does not return to work within 60 days from termination of temporary disability benefits and whose employer does not offer suitable modified or alternative work within 30 days from termination of temporary disability benefits may qualify for the supplemental job displacement benefits. These “vouchers” help pay for retraining or skill enhancement and cover school tuition, fees, books, and expenses required by the school for training.
Death Benefits – Payments are made to the spouse, children or other dependents if an employee dies from a work-related injury or illness. The amount of the death benefit is determined on the number of total and/or partial dependents.
Income replacements benefits are based on whether the disability is total or partial and whether the disability is total or partial and whether it is permanent or temporary.
Workers compensation is the exclusive remedy for workplace injuries in most states. If a company does not provide insurance coverage it can result in fines, criminal prosecution, personal liability, and employees’ exercising the option to sue the employer rather than file a compensation claim.