Workers’ compensation is a specific type of insurance that provides employees with assistance when they are injured on the job. The state of California requires all businesses to provide workers’ compensation policies. Expert Payroll LLC helps small businesses find the coverage they need.
What Does Workers' Compensation Provide?
Workers’ compensation insurance provides no-fault coverage for workers who are injured on the job or acquire occupational diseases. “No-fault” means that it does not matter who caused the injury: the worker, the employer, or anyone else. No-fault coverage guarantees that employees have access to medical care for on-the-job injuries.
In addition to requiring that employers provide workers’ compensation insurance, the state of California specifies:
- Which injuries it covers
- How the injuries will be evaluated
- How medical care will be delivered
- Dollar amount of benefits
Some of the benefits that workers’ compensation provides to injured workers include wage replacement, medical treatment, and vocational rehabilitation if they are unable to return to their previous occupation.
Workers’ compensation coverage also provides protection to employers. The laws surrounding workers’ compensation limit employees’ rights to sue after an accident or injury at work.
Workers’ compensation insurance is separate from the health insurance employers may provide to their employees or general liability insurance that the business holds. If you own a small business, you must provide workers’ compensation insurance in addition to any other policies.
In addition to providing coverage for their employees, employers have other obligations when it comes to workers’ compensation. California employers must post in a conspicuous location any information directed at employees about workers’ compensation. This information must be written in both English and Spanish.
Employers can take steps to avoid workers’ compensation claims. Properly training employees, especially in preventing known common accidents, can help. When accidents do occur, make sure to record the details in an accident record log for documentation in case of a workers’ compensation filing.
Cost of Workers' Compensation
Several factors influence the price of workers’ compensation insurance, including:
- Policy premium
- Deductible payments
- Number of employees
- Administrative costs of handling claims
- Reporting to the insurer and the state
The price of the policy premium depends on your particular industry and the small claims history of your business. Certain industries are riskier or more dangerous and therefore come with higher premiums. If your business has made many workers’ compensation claims in the past, that history will also drive up premiums.
Benefits of Outsourcing Workers' Compensation
Expert Payroll LLC offers unique solutions to workers’ compensation needs for small businesses. We understand that budgeting is a key consideration for all businesses. We will work with you to find the coverage you need at a price you can afford, without paying for expensive extras.
In addition to helping you find the right coverage, we also offer affordable payment solutions. While many carriers require up-front premium payments, we offer payment options that can be spread out over time. This helps many small businesses that may lack the capital to pay the entire premium at once.
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