The Importance of Workers Compensation Insurance

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Workers Compensation Legal Issues

Workers compensation is a no-fault system of benefits provided by States to most workers who have    job-related injuries. If your company has employees, you are required by California law to buy workers compensation insurance. Sole proprietors with no employees are not required to carry CA workers comp insurance. Your employees should be covered for any work related injury or illness.

One question we often get asked is, what is an employee? An employee can be a full-time or part time person, working on behalf of the company. Temporary and seasonal staff can also be defined as employees. Many people seem to think that just because someone isn’t a full-time employee they don’t need to have workers’ compensation coverage. Not true. Under all these cases you are required to have workers’ compensation insurance.

The way you pay your employee does not impact whether or not they are considered an employee. You can 1099 somebody and have him or her withhold his or her own taxes and you are still required to carry workers’ compensation coverage on that person. Don’t confuse tax laws and workers’ compensation laws. These laws and statutes are completely unrelated.

California Workers Compensation Insurance

Having the right Workers Compensation plan from North Bay Insurance Brokers, Inc. can allow your business to ensure payments and cover expenses if an employee is injured from a work-related accident. Injuries can range from car accidents and back injuries to equipment malfunctions and, in some unfortunate cases, death

What Does Workers Compensation Cover?

Most if not all injuries or illnesses that are caused by, through or on the job, are covered under workers compensation laws. Typically the benefits are defined as:

  • Medical – cost of medical treatment
  • Time loss – lost wages
  • Disability/rehabilitation – total or partial disability which may require re training or rehabilitation to return to work

What about independent contractors?

An independent contractor is someone who owns their own business, so they control their own working hours. They control how they get the job done. They are the people to which you give a project, they return a completed project, and they are usually completely unsupervised by you. So, if you have someone who fits into this definition, you probably don’t need to carry workers’ compensation coverage on that person.  However, it is always a good idea to call is to help you review each situation.

North Bay Insurance Brokers, Inc. understands the value of good employees. We know that your day-to-day operations depend on their hard work, expertise, and dedication, and if you supply them with quality benefits and plans, they can work with the peace of mind assurance that they’re properly protected.