How Does Workers’ Compensation Work?
Every state has unique workers’ compensation laws. In California, every employer must carry workers’ compensation insurance, even if a company has a single employee. Workers’ compensation insurance works like most other types of insurance. The employer pays a premium every month to maintain coverage, and the policy stipulates how much coverage the employer can expect if an employee sustains an injury on the job.
Like most other types of insurance, workers’ compensation rates may increase with repeated claims. This means an employer with a more hazardous work environment will invariably be more expensive to cover with workers’ compensation insurance. Unfortunately, many employers attempt to obfuscate the workers’ compensation process for injured employees to prevent them from filing claims and exercising their rights. This leads to many injured employees accepting minimal settlements and compensation for serious injuries.