If you are in pain after a work-related injury or illness, then your employer is usually required by law to pay for workers’ compensation benefits. Benefits that an employee can receive include wage replacement and medical benefits, in exchange for the relinquishment of the workers’ right to sue for tort of negligence. Workers’ compensation systems differ from state to state. In California, employers can purchase workers’ compensation insurance through the State Compensation Insurance Fund (State Fund) or through a private insurance company. However, many employers in California are self-insured, meaning that they use their own funds to provide workers’ compensation benefits. Employers in California can pay for workers’ compensation in the following three ways:
Premiums to the State Fund
The State Fund provides workers’ compensation insurance to California employers. If you are unable to receive coverage from a private insurance company, then the State Fund will act as a last resort. You can purchase insurance with the State Fund in three ways:
Through an insurance broker
By calling a State Fund office location
By beginning the application process through the Request a Quote tool
The pricing of State Fund premiums are determined by the size of the payroll and the risk characteristics of each individual business. Contact our California workers’ compensation law firm for advice before finalizing an insurance agreement with the State Fund.
Payments to an Insurance Company
California employers can obtain workers’ compensation insurance through a private insurance company. If your employer has selected this route, then your benefits will be paid for by that insurance company. A commercial broker or agent can help an employer purchase workers’ compensation insurance from a reputable insurance company. Our California attorneys offer a free consultation and will answer any questions you may have about obtaining workers’ compensation benefits through a private insurance company.
Directly to the Employee
Self-insured employers must be large enough to prove that they are able to pay for the expected worker's compensation. These employers typically use third-party administrators. The third-party is usually in charge of the paperwork, management of claims and sending funds to the injured worker after the employer pays the due amount. If your employer is self-insured and you believe you are not receiving the compensation that you require, then you should consult with an attorney as soon as possible.
Contact a Workers’ Compensation Attorney for More Information
Injured employees in California deserve to receive the entirety of their workers’ compensation benefits. If this is not the case, then your employer or the insurance company deserves to be held accountable. Call a California workers’ compensation lawyer today for a free initial consultation. You can also contact us online and tell us about your specific case.