What Is Workers’ Compensation Insurance?

If you regularly read the Voi Insurance Solutions LLC blog, you will know we’ve mentioned workers’ comp in two blogs. However, today, we’re going to dive deeper into this topic. If you own a business in Glendale, CA, this blog will explain how workers’ compensation insurance works and whom it protects.

Who Must Buy Workers Compensation Insurance?

Every U.S. state has its guidelines for workers’ comp insurance. Some states allow very small businesses with only a few employees to forgo buying workers’ comp policies. However, in California, every business that employs someone, be it part-time or full-time, must purchase workers’ compensation insurance.

What Does Workers Compensation Insurance Do?

Each state maintains a workers’ comp program that ensures employees who are injured on the job or who develop an illness from workplace exposure can get medical and rehabilitative care. These programs also provide partial pay for the employees while they recover.

The workers’ comp insurance policies purchased by California’s employers ensure that funds for these expenditures are readily available. When an employee has an accident at work, they file a claim for workers’ comp. The state program administers the program. Your workers’ comp insurance covers your employees, not others’ employees.

How an Employee Accesses Benefits

When an employee gets hurt on the job, they need to notify their employer immediately. After seeking initial medical treatment, they file a workers’ comp claim. They typically file this claim with a representative at their workplace and the state program, who files additional paperwork with the state program. The workplace has to complete part of the form promptly. According to the Department of Industrial Relations of California, a claim should be filed within 14 days following the injury.

When an employee agrees to accept workers’ compensation benefits, they surrender the right to sue their employer for damages. In cases of serious injury that prevents a complete recovery, workers’ compensation can make settlement or disability payments.

Contact Us Today

If your Glendale, CA business plans to hire employees, contact Voi Insurance Solutions LLC for workers’ compensation insurance. It’s state law to have this crucial type of commercial insurance. Allow us to help you maintain your compliance.