Workers compensation insurance is usually mandatory for employers in a majority of states. Although in some states, smaller employers (usually with 1-3 employees) might be able to opt out, many will still choose to participate to take full advantage of many of the critical protections that workers compensation insurance provides. Those protections include the following:
Exclusive Remedy
Injured employees are provided with exclusive remedy by workers’ compensation statutes. That means that in a majority of situations an employer may not be sued for causing the insured’s injury.
No-Fault Coverage
The provision for no-fault of workers’ compensation statutes is what provides your employees with protection in the event they become injured while on the job no matter how the injury happened. In most situations, if the employee was injured over the scope and course of her/his employment, then coverage will be given even if an employee was partially responsible for the injury.
Peace of Mind
Business owners can choose to be included along with employees for workers’ compensation benefits. That means they can get access to important statutory benefits including: disability benefit payments, payment of lost income/wages; and medical expense payments. These payments can be crucial if your employee or you become injured and are unable to return to work.
In states where it is mandatory to participate in workers’ compensation or your business is to big to opt out – there can be very serious consequences if your business does not buy workers’ compensation insurance. Those penalties may include fines, penalties, personal liability, and loss of exclusive remedy
Even if your business is small and you have only two or three employees, if an incident or accident occurs, it can lead to an employee filing a sit against your or your business. You could end up be liable for a settlement and be expected to pay, even if your company goes out of business.
Having workers compensation insurance lodi ca protects your company as well as your employees against devastating lawsuits, and enables you to focus on continuing to grow your business.