Why California Employers Need Workers’ Compensation Insurance

If you run a business or manage an organization, one of your top priorities may be saving money. Shrewd business owners know that cutting costs without making unnecessary sacrifices is key to their success.

You must simply understand that some expenses are worthwhile investments. For example, if you are an employer in the state of California, it is highly advisable that you purchase workers’ compensation insurance. The following are critical reasons why:

You probably have to anyway

California’s Labor Code is written to benefit employees. In California, virtually all employers are required to carry some form of workers’ compensation insurance so that employees who are injured on the job or who develop medical conditions as a result of their exposure to hazards in the workplace have a means of seeking compensation for the medical bills and other such losses.

Odds are good you are required under California’s Labor Code to purchase workers’ compensation insurance. Make sure you have done so to avoid getting into legal trouble.

Don’t underestimate the potential severity of the penalties you might face if you do not have workers’ compensation insurance as required under California law. Depending on the circumstances, if an employee is injured and their employer does not have workers’ compensation insurance, said employer may be charged with a misdemeanor. If found guilty, an employer could be required to pay a fine of up to $10,000, spend up to one year in county jail, or both.

Buying workers’ compensation insurance will probably save you money

California’s workers’ compensation insurance system is a no-fault system. A no-fault system gives an injured worker the right to recover workers’ compensation benefits regardless of who may have been at-fault for causing their injuries.

If an employer is uninsured, then an injured worker seeking compensation for their losses might consider filing a personal injury claim against their employer. This is rarely an option available to employees if they have the option of filing to recover workers’ compensation benefits.

This highlights one of the many ways that purchasing workers’ compensation insurance can actually be financially beneficial. Although the premiums you may pay might seem costly, a lawsuit will be far more costly. Having proper workers’ compensation insurance will help you avoid a lawsuit. Once more, it can also help you avoid hefty fines.

The importance of working with a qualified uninsured employer attorney in California

Are you a California employer who currently does not have workers’ compensation insurance or has reason to believe that the insurance you currently have is insufficient? If so, this is not a circumstance you can simply ignore. There is a chance that one day an employee of yours will be injured in a work-related accident. You need to be certain you are prepared for when that occurs.

The best way to achieve this goal is to coordinate with a professional who can assess your existing workers’ compensation insurance coverage and explain how you can take further steps to mitigate risks. At Sacks Law Group, APC, our Los Angeles uninsured employers attorneys are on hand to help you navigate this sometimes confusing topic. Learn more about how we can help by contacting us onlineor calling us at 310-216-7778 to schedule a meeting.