What is workers compensation Insurance?
Base on a true story, a restaurant worker was injured while working, the claim was settled at $985,120 dollars. Fortunately, the restaurant owner carries works compensation insurance, otherwise, he will pay all of the legal cost and indemnity.
What will workers compensation cover?
With workers compensation insurance, employees can provide protection against diseases or injuries that may be encountered at work. Similarly, they can also protect employers. If employees are injured because of the employer’s fault, workers compensation insurance can also help employers to pay the relevant liability in the lawsuit.
Workers compensation insurance generally compensates employees medical expenses as well as employees’ disability or illness caused by work. Workers compensation insurance not only provides fair compensation to injured employees but also protects employers from additional litigation.
Workers compensation insurance protection:
- Medical expenses
- Loss of wages (income loss caused by temporary failure to work and permanent disability)
Why do you need workers compensation insurance?
It’s mandatory in many states such as California. Contact us to learn how your state complies to you.
California law requires every employer to carry workers compensation insurance, and without it, even if there is only one employee, it is a criminal offense. According to California Labor Law 3700, employers can be imprisoned for 60 days in prison and fined $10,000. According to the California Labor Law 3700.5, if an employee is injured at work and submits work-related injury compensation and the employer fails to purchase labor insurance according to law, the California government can punish the employer for $10,000 on each payroll, up to $100,000 for the uninsured employer and jailed for a year.
It will protect employees and employers.