The question is often asked – What is Workers Compensation Insurance? Employers are expected to take adequate care to conform certain safety standards at workplaces. Nevertheless, accidents do happen and when such mishaps occur, workers compensation insurance provides coverage.
Workers compensation insurance serves two basic purposes: It ensures that injured workers get medical care and compensation for a part of the income they lose while they are absent from work and it also provides employers protection from lawsuits by the injured workers.
Workers receive benefits regardless of who was at fault for causing the accident. If a worker dies while working, the insurance provides death benefits for the worker’s dependents.
All employers in California are mandated to provide Workers Compensation benefits to their employees under California Labor Code Section 3700. If a business employs one or more employees, then it must comply with the requirement of the law.
California Labor Code Section 3351 clearly defines who an employee is and who is eligible to be covered under a Workers Compensation policy. The California Constitution, Article XIV section 4, sets forth the details pertaining to establishing a system of workers’ compensation.
This section relates to creating and enforcing liability on the part of employers to compensate any or all of their employees for temporary/permanent disability, and compensate the dependents, if death incurs. Further, the law enjoins that the system must render appropriate justice in all cases expeditiously and inexpensively.
Temporary Disability – If a worker, injured due to accident, is unable to resume work within three days, then he/she is entitled to receive temporary disability benefits to partially compensate wages lost as a result of the injury.
Permanent Disability – If a worker is permanently disabled due to an accident, he/she is entitled to receive permanent disability benefits.
Lifetime Pension – Workers sustaining severe injuries are also eligible for a life pension – payments every week for the remaining life-period of the worker.
Out-of-Pocket Expenses – Interestingly, workers who are accident victims are entitled to reimbursement for out of pocket expenses – travelling to and fro for receiving medical aid, pharmacy/ medication expenses, parking and other related costs.
Job Training – Severely injured workers who are incapacitated and not able to resume their former type of work may be entitled to job retraining benefits to facilitate the injured worker find alternate gainful employment.
Medical Care – Workers, who have sustained injuries during an accident, are entitled to be examined by a suitable medical specialist who treats the similar type of injuries.
Penalties – In the event, an accident victim is being unfairly denied medical attention, he/she may be entitled to penalties and interest payments including attorney fees.
Social Security Benefits – The accident victim will become eligible for Social Security disability benefits, if he/she was rendered unfit to perform any type of full-time work for at least one full year.
On the whole, workers compensation insurance is something very important and each employer must provide it to their employees.
