Imagine an accident at your company harming your employees. Even something as simple as an employee slipping on a wet floor or tripping over an upturned rug could lead to severe injuries. In these situations, access to appropriate financial resources can make all the difference for both affected employees and your organization at large. Fortunately, by understanding and retaining appropriate workers’ compensation insurance, you can be prepared for these scenarios.
What Can Workers’ Compensation Insurance Cover? 
Although workers’ compensation insurance policies may not all be the same, they often include similar financial protections. Specifically, in response to work-related injuries and illnesses, employees can submit a claim to assist with the following:
- Medical bills
- Wage replacement
- Disability benefits
- Vocational rehabilitation costs
- Death benefits
Additionally, your policy may include employers’ liability coverage, which can cover legal costs should affected employees choose to sue the company.
Is Coverage Legally Required?
In California, most employers are legally obligated to carry workers’ compensation insurance. Failing to adhere to these laws could impose significant consequences, including fines and shutdown orders. Although certain exceptions may exist, such as for sole proprietors and independent contractors, even those who qualify should still strongly consider purchasing coverage.
Why Is This Type of Insurance Important?
Regardless of formal requirements, workers’ compensation insurance should be a top priority for all businesses and employers. An uninsured business could be heavily penalized for noncompliance. Even if your company qualifies for an exemption, failing to carry coverage could lead to the following consequences:
- Expensive out-of-pocket losses following workplace injuries
- Worse attraction and retention, as employees may not feel comfortable working while uninsured
- Limited prospects, as some clients may decline to work with an uninsured business
Sole proprietors should strongly consider maintaining a policy, as coverage can subsidize their health insurance and help them access the care they need should they be injured on the job.
We’re Here to Help
Contact Simple Lane Insurance Agency in El Cajon, California, today to learn more about coverage options and get a free workers’ compensation insurance quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.