Business Insurance

Workers Compensation

Unfortunately, work-related illnesses, accidents, and injuries happen daily, even to employers and employees who maintain strict safety standards. While you can’t prevent every accident or illness, you can be prepared for them when they do happen. Typically, the best way to do this is through workers’ compensation insurance coverage. 

Workers’ compensation insurance isn’t just a necessary cost of doing business; it’s an essential part of protecting your employees and yourself in California. It’s so essential that small companies who aren’t legally required to carry this coverage for their workers often elect to carry it anyway. As such, it’s imperative that you have the right coverage. After all, what is the sense in paying for coverage that isn’t right for you or your employees? 

Always work with a trusted insurance agency for your workers’ compensation coverage. 

Why Provide Workers’ Compensation Insurance?

Workers comp insurance provides many benefits and protections, including:

Avoiding Lawsuits

State workers’ compensation statutes offer an exclusive remedy for injured employees. In most situations, an employee can’t file a lawsuit against their employer for causing an injury. While they can file a lawsuit against a third party, such as an equipment manufacturer or a contractor, they can’t file one against an employer with worker’s compensation insurance. Workers’ comp gives them compensation for their injuries instead.

No-Fault Provisions

Workers’ compensation statutes also have no-fault provisions. This means the law protects your employees if they are injured on the job, regardless of how the injury occurred. In most circumstances, for employees who are injured or become ill within the course and scope of their employment, workers’ comp coverage still applies, even if the employee was responsible to some degree for their own injury—for instance, maybe they failed to follow proper safety procedures with a piece of equipment or a specific chemical. 

Covering Yourself

Unfortunately, business owners aren’t immune to injuries on the job. Have you ever wondered how you would pay for a work-related injury or illness for yourself? As a business owner, you can choose to cover yourself with workers’ compensation benefits in addition to your employees. This means that you can obtain access to statutory benefits, such as:

  1. Medical expense payments
  2. Payments for lost wages or income
  3. Payment of disability benefits (critical if someone becomes injured and cannot return to work)
  4. Death benefits, if applicable

Usually, if you run a small company, voluntarily participating in your state’s program is usually the best way to protect your employees and your business.

The Consequences of Not Carrying Workers’ Compensation Insurance

On the other hand, if you have a larger business and your state legally requires participation in workers’ compensation coverage, you can face severe consequences if you don’t purchase workers’ compensation insurance. You can face many penalties, including but not limited to:

  1. Fines: Depending on the laws in your state, your business could be fined for each day you don’t have worker’s comp coverage. They can reach thousands of dollars and have the potential to run your business into the ground.
  2. Penalties: Some states have laws allowing them to actively keep you from operating your business. Alternatively, they can obtain a court order to close your business down until you provide proof of workers’ compensation coverage.
  3. Personal liability: If you lack the proper coverage, as a business owner, you and your business could be held personally liable for your employees’ medical expenses and lost wages if they are injured on the job.
  4. Loss of exclusive remedy: If you don’t maintain workers’ compensation coverage and an employee suffers a work-related injury or illness, they may have the right to file a lawsuit for any damages they incur.

Even if you own a small company with a close-knit group of only two or three employees, a random unexpected incident or accident could result in one of your employees filing a suit against the company or you personally. If a lawsuit is filed, you, as the employer, might be found liable for your injured employee’s settlement and be legally required to pay for their damages as well as your legal defense, even if your company goes out of business.

Maintaining workers’ comp coverage not only protects your workers, but it also protects you—the company owner—from serious lawsuits. Workers’ comp insurance provides you with peace of mind and allows you to focus on running and growing your business.

The Right Workers Comp Insurance

It’s imperative that you take the time to understand your options for workers’ comp insurance. You want to make sure that you are selecting the best possible choice considering your needs, the needs of your company as a whole, and the needs of your employees. The best way to be certain you purchase the right workers’ comp insurance for your business is to speak with a licensed agency. Their agents work hard to understand what’s right for each individual company while considering many factors. Business owners face many demands; however, workers’ comp insurance is something they can rely on an expert to help with.

Why Panorama Insurance?

At Panorama Insurance Agency Northridge, CA, we know you have a choice when it comes to workers’ compensation insurance. That’s why we partner with several insurance providers to give you the tools you need to select the right coverage for your business and your employees. Our agents will work with you to explore all of your options, guiding you every step of the way. Give us a call today to learn how easy it is to start your coverage and the benefits it provides.