Workers' compensation is a mandatory insurance program in most states that is designed to provide benefits to employees who get injured on the job. Each state applies its own laws and regulations for workers’ compensation, though the federal government also has its own unique workers’ comp program designed for federal employees.

Whether you have a small, medium, or large business, working with our Capital Providers Insurance Services agents is a smart way to stay current with workers’ comp laws and regulations in the state of California.

What benefits can employees expect?

Workers' compensation insurance covers a broad range of injuries and situations, including those caused by an accident, such as slips and falls; injuries associated with overuse or misuse, such as chronic back problems and repetitive stress injuries; and some illnesses and conditions caused by the work environment, such as lung disease, heart disease, and stress-related digestive problems.

In this regard, workers' comp covers:

• Medical expenses associated with the injury or illness
• Missed wages
• Compensation for permanent injuries
• Cost of retraining
• Benefits to survivors - for employees who die on the job

Importance of workers' compensation insurance

Employees who suffer work-related injuries or illness can claim the benefits of workers’ compensation regardless of the carelessness of the party at fault - the employer, employee, colleague, customer, or even a third party. In other words, a workers’ comp case does not require the insurer to determine the party at fault, provided the injury occurred while the employee was working.

The benefits are neither increased by the employer’s negligence, or reduced by the employee’s carelessness. That said, there are a few instances when the injured employee may be denied the benefits of workers’ comp, such as:

• If the results of a drug and alcohol test reveal that the injured employee was intoxicated at the time of the injury
• If the injuries were self-inflicted, like when the employee starts a fight
• If the employee was in violation of company policy or was committing a serious crime
• If the injury is not job-related - injuries that occur while attending a company social function, traveling on business, or running a work-errand are covered.

Without workers' compensation insurance, injured employees may sue you for any reckless action that caused or contributed to the injury. If successful, you may ordered by the court to pay for the resulting medical expenses, punitive damages, lost wages, and even pain and suffering, which can be financially devastating to your business.

Your responsibility to provide workers’ compensation insurance depends on many factors, such as the type of business, the type of work your employees do, and the number of employees. Please contact us to find out more about the eligibility requirements for workers’ comp coverage in California.