Consumers have their mortgages, their auto insurance and probably some form of homeowner's insurance. They may have measures in place to protect their documentation, belongings and firewalls to protect their computer, all of which they pay close attention to. But not many consumers give that kind of attention to their workers compensation policy. This policy is required by law, ensuring that the workplace is safe and that all responsibilities are understood if there were an incident.
The fact is no matter how much effort an organization puts into creating a secure environment, accidents happen. The workers compensation policy is engineered in favor of the employee. It looks at practical ways to ensure the injured party has access to affordable and effective medical care and any needed rehabilitation. The policy is designed so that there is no undue financial burden and the injured has every chance to collect lost wages.
While the workers compensation package is in place to protect the employee, a business has to consider how the policy also protects the organization. Many states mandate the policy, even if you only have a single employee. Compliance is unavoidable, but this also saves you from being fined, audited or, worse, on the wrong side of a lawsuit. Look at the policy as insurance for safeguarding the precious assets that are your employees. It shows you care for the well-being of each employee, that you're ready to provide for them at the worst of times and you'll help them get back to work.
The best part of the workers compensation policy is it ensures employers look for aggressive safety programs and protocols that keep employees safe. Employers look for the most effective ways to control accidents. This can also lower monthly compensation premium payments.
As each state has different requirements, Los Angelenos should take the time to see if their policy is compliant with California's regulations. Polices can have job classifications which impact coverage. Some employers have inadvertently misclassified employees, creating confusion if the policy has to be implemented. There are also enterprises with polices not in complete compliance with the state.