Employees who get hurt on the job have the right to file a claim for workers’ compensation benefits while they are recovering from their injuries and unable to work. These benefits include financial compensation to cover the costs of living while wages are not being earned and coverage of medical care costs related to workplace injury. Typically, employers carry insurance to cover the expenses related to these claims, but some employers are not insured.
California state law requires all employers to carry workers compensation insurance, with the only exception being sole proprietorships (i.e., self-employed people). This means that, no matter how large or how small a business may be, by law employers must provide workers’ compensation benefits to any employees who are injured on the job. Being uninsured does not mean that an employer cannot be held liable for injuries sustained by an employee on the job, and the expenses associated with a lawsuit can quickly add up to far more than the cost of coverage would be.
Not carrying workers’ compensation insurance is risky. Some employers may opt-out of carrying insurance due to costly premiums, or because their business is a small family business and they do not expect any employees to file a claim, or because the business is not in a hazardous industry that is known for resulting in employee injuries. However, under the law, none of these circumstances preclude an employer from having to carry workers’ compensation insurance. Being uninsured is not only a legal risk but is also a financial risk. If an employee becomes hurt at work and files a claim, you could be compelled by the court to not only cover the cost of that employee’s benefits but also face steep fines and strict penalties on top of that.
Not having workers’ compensation insurance coverage can lead to stark penalties for employers. Some employers choose to go the self-insure route and handle workers compensation claims as they arise. Fines and incarceration are some of the most common and also scariest penalties that an employer can face.
Fines for not having workers’ compensation insurance can go up to 100,000 dollars and are determined by the courts. The fines can range from $2,000 to $10,000 per employee at the time of the claim. You may also have to cover lost wages, medical expenses, and other fines related to being uninsured. The state may also force business closure until there is workers’ compensation coverage.
An employer who is uninsured can also be considered self-insured against workers’ compensation claims. The risks of not having workers’ compensation insurance can put the entire business in jeopardy. Some of the risks are:
You have worked extremely hard to build your business to where it is today and you do not want to have to possibly close it down due to a workers’ compensation claim. Sacks Law Group, APC works with uninsured employers and small businesses all across Riverside and California. Do not run the legal risks and contact us today.
Uninsured employers have options available to them, and we can help you navigate these options. Our attorneys specialize in workers compensation defense for uninsured employers. If you do not carry workers’ compensation insurance and your employee has filed a claim for benefits, it is urgent that you contact a workers’ compensation defense specialist to advocate for you in court and assist you with protecting your business. Contact us to discuss your case.
When an employee is injured and attempts to claim workers’ compensation, the employer is entitled to fight the claim. If you are uninsured or self-insured this does not exempt you from the possible repercussions of not having adequate workers’ compensation coverage. Even if it is found that the workers’ compensation claim is denied, the employer will still face repercussions from the state for not having coverage. Fighting a claim and winning will not excuse you from having workers’ compensation insurance.
It is crucial for employers to consider risk management options. Our Riverside uninsured employers defense attorney can guide you on risk management factors that can help you get your business back on track after an employee files a workers compensation claim. We offer legal counseling for employers to become more informed on how to mitigate their legal circumstances and avoid strict penalties.
There are several aspects associated with a workers’ compensation claim that we consider before taking your case. We will take a look at how the accident and injury occurred and if there was any semblance of fraud present. Although we believe that injured employees are entitled to compensation, we do not feel they should get any more than what the claim calls for. Fighting a workers’ compensation claim while also facing an uninsured workers’ compensation case can be too much for some employers to handle. That is why you need a Riverside uninsured employers defense attorney who has the skills and experience to help you.
If your business does not carry workers’ compensation insurance, you need an uninsured employer’s defense attorney in Riverside. Our attorneys wrote the book on workers’ compensation defense, and we handle all types of legal matters related to it, including counsel to minimize risk, arbitration, workers’ compensation fraud claims, employer discrimination allegations, and arbitration. If you are uninsured and need legal advice, we are here to help. Call us today for a consultation.