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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:
Medical Care - In the event of workplace related injury and illness, comprehensive medical coverage is extended to the employee.
Temporary Disability Benefits - Many injuries require a certain recovery period and immediate return to work is not always possible. If an employee is unable to return to work for more than a few days, benefits to cover some of the employee's lost wages are paid.
Permanent Disability Benefits - Some workplace injuries result in long-term medical problems that reduce the injured employee's ability to earn future income. In these events long-term benefits may be provided to the disabled.
Supplemental Job Displacement Benefits - If an employee becomes permanently disabled due to a workplace injury and the employer is unable or unwilling to offer alternative work, retraining or reeducation may be covered. In California, this benefit is paid in the form a voucher that may be used at a state-approved school. Depending on the nature of the disability, the voucher may cover up to $10,000 in educational programs.
Vocational Rehabilitation - Vocational rehabilitation is offered in cases where employees are unable to their former vocation due to a disability. These benefits are offered to return the worker to gainful employment. Unlike other benefits, vocational rehabilitation is often only offered in cases where the disabled can be reasonably expected to regain gainful employment.
Death Benefits - Benefits are provided to the dependents of an employee who dies as a result of a workplace-related accident or injury.
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.