Workers\u2019 compensation is the oldest social insurance program in the United States; programs vary from state to state. Workers\u2019 compensation insurance became mandatory for California employers in 1913.<\/p>\n
California Labor Code requires all employers (with at least one employee) to carry workers\u2019 compensation insurance. It is a no-fault system, meaning that injured employees need not prove the injury was someone else\u2019s fault in order to receive workers\u2019 compensation benefits for an on-the-job injury.<\/p>\n
The workers\u2019 compensation system is premised on a trade-off between employees and employers \u2013 employees are supposed to promptly receive the limited statutory workers\u2019 compensation benefits for on-the-job injuries, and in return, the limited workers\u2019 compensation benefits are the exclusive remedy for injured employees against their employer, even when the employer negligently caused the injury. This no-fault structure was designed to \u2013 and in fact did \u2013 eliminate the then-prevalent litigation over whether employers were negligent in causing workers\u2019 injuries.<\/p>\n
To learn more about the program please go to: https:\/\/www.insurance.ca.gov\/0100-consumers\/0060-information-guides\/0030-business\/ <\/a><\/p>\n There are three basic parts to the workers\u2019 compensation system:<\/p>\n The benefit structure defines what injured workers are entitled to receive when they sustain an injury \u201carising out of\u201d and in the course of their employment. There are five basic types of workers\u2019 compensation benefits available, depending on the nature and severity of the worker\u2019s injury: (1) medical care; (2) temporary disability benefits; (3) permanent disability benefits; (4) vocational rehabilitation services; and, (5) death benefits.<\/p>\n Unlike most social insurance programs (e.g., social security and unemployment compensation), workers\u2019 compensation in California, as well as in most other states, is not administered by a government agency. Workers\u2019 compensation benefits are administered primarily by private parties \u2013 insurance companies authorized to transact workers\u2019 compensation and those employers secure enough to be permitted to self-insure their workers\u2019 compensation liability.<\/p>\n When an employer becomes aware of an on-the-job injury, the employer is expected to begin the process of providing the injured worker the benefits to which he or she is entitled under the law. Either the employer (if the employer is authorized to self-insure) or the employer\u2019s insurer pays the benefits. Employers may finance their liability for workers\u2019 compensation benefits by one of three methods: (1) self-insurance; (2) private insurance; or, (3) state insurance.<\/p>\n Employers may purchase insurance from any of the approximately 300 private insurance companies which are licensed by the Department of Insurance to transact workers\u2019 compensation insurance in California. Insurance companies are free to price this insurance at a level they deem appropriate for the insurance and services provided.<\/p>\n","protected":false},"excerpt":{"rendered":" Obtaining Workers\u2019 Compensation Insurance Workers\u2019 compensation is the oldest social insurance program in the United States; programs vary from state to state. Workers\u2019 compensation insurance became mandatory for California employers in 1913. California Labor Code requires all employers (with at least one employee) to carry workers\u2019 compensation insurance. It is a no-fault system, meaning that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":24789,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-24797","page","type-page","status-publish","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n
The Benefit Structure<\/h4>\n
The Benefit Delivery System<\/h4>\n
\nThe state\u2019s role in benefit delivery is to oversee the provision of workers\u2019 compensation benefits, provide information and assistance to employees, employers, and others involved in the system, and to resolve disputes that arise in the process.<\/p>\nThe Benefit Financing System<\/h4>\n
Private Insurance<\/h4>\n