In California, Workers’ Compensation Insurance is mandatory for businesses to carry. However, this type of insurance can be confusing. The following is a breakdown of some of the important parts to help you have a better understanding.
Workers’ Compensation insurance is a type of coverage that provides wage replacement and medical benefits to employees inured in the course of employment in exchange for mandatory relinquishment of employee’s right to sue their employer. The general rule of thumb is that all businesses in California with employees need Workers’ Compensation insurance.
If your employee is injured on the job, your Workers’ Compensation insurance will provide benefits such as temporary disability, medical expenses and permanent disability award, if appropriate, based on the long term effect of the injury sustained.
Here are the things companies and organizations should put in place regarding Workers’ Compensation
- Acquire Workers’ Compensation Insurance Cover For Your Need
Executing Workers’ Compensation Insurance is a fundamental criterion of being an employer in California. You must possess Workers’ Compensation coverage at all times while your business is running.
If you fail to provide a cover and an employee gets injured, you will have to pay the employee’s medical cost as well as risk additional penalties and possible lawsuits.
- Post Legally Required Forms, Posters And Notices
All current employees must easily see the California Workers’ Compensation posters that contain detailed information regarding your insurance representative, medical emergency telephone number and the claims administration contact information.
All new employees must be given the California Workers’ Compensation pamphlet. This notice describes the rights and obligations of employers and employees as well as includes forms for pre-designating a healthcare provider. There are other claims and reporting forms.
- Know How The Workers’ Compensation In California Works
There is a difference between first aid and medical care. You have minimal reporting duties if the injured employee loses no time from work beyond the date on which he/she sustained that injury and the treatment falls within the jurisdiction of first aid.
Classification of cases as first aid saves you money as a business owner because they do not affect your insurance premiums. For serious injuries, send the injured employee to a hospital to receive medical care.
- Stay In Touch With Your Employees
This is a critical step in controlling the cost of your Workers’ Compensation claims. Employees who feel they understand the process, and feel valued as members of your workforce, are more likely to keep their medical appointments, follow medical instructions, cooperate with the claim adjuster and have a desire to return either to their regular job or a slightly modified one that is tailored to their needs.
- Review The Doctor’s First Report And Investigate
No company wants a reoccurrence of an accident, so ensure you investigate the accident and determine the exact cause of the injury. Interview coworkers or witnesses and inspect the work area to identify corrective actions that will prevent reoccurrence of the accident.
Implementing these at your business establishment will help you manage Workers’ Compensation claims.