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Frankel & Associates - Facts About Workers' Compensation

Facts About Workers' Compensation

What is Workers' Compensation Insurance

Workers compensation insurance, also known as workers' comp insurance, is a (usually) mandatory insurance policy that provides for employee care in the event of injury or illness acquired in the workplace or, in the event of work-related death, compensation to dependents of the deceased.

Originally known as workman's comp, workers compensation was enacted in most states, including California, during the early 20th century. By 1949, state workers comp laws were present in every state. As in most states today, California employers are required by law to carry workers' comp insurance.

Who Needs Workers' Compensation Insurance?

Worker's compensation insurance is required by law in most states, including California. If you are a business that employs even one single employee, state workers' compensation laws state that a policy is usually mandatory. Failure to obtain workers' comp insurance is punishable by heavy fines and, in many states (including California) may be a criminal offense. In certain industries, workers' compensation insurance may even be mandatory for independent contractors, undocumented laborers and the self-employed.

What is Covered by Workers' Compensation?

Workers' compensation insurance benefits cover a six main areas:

More Information & Other Questions...

If you are an employer with questions about obtaining workers' compensation insurance or wish to obtain worker's compensation insurance, fill out our online contact form or call us toll-free at 1-800-696-3023.