What is workers compensation and how does it work? While avoiding accidents at work should always be your top priority, it’s good to know the claims you are entitled to in case they happen. Read on to learn more about California’s workers comp laws and how you can benefit from it.
What is Workers Compensation and How Does It Work? | 8 FAQs Answered
In this article:
- What is Workers Compensation?
- How Do I File a Workers Comp Insurance Claim?
- What Does Workers Compensation Cover?
- Can All Employees Avail of Workers Compensation?
- How are Workers Comp Insurance Benefits Calculated?
- Do Employees Pay for Workers Comp Insurance?
- What Do I Do After My Workers Compensation Claim Gets Approved?
- How Long Does My Employer Have to Process My Claim?
1. What Is Workers Compensation?
Also known as workers comp, it is a type of financial support system mandated by California law. It’s essentially a form of insurance that protects employees from expenses due to work-related accidents.
2. How Do I File a Workers Comp Insurance Claim?
The first step is to file a workers compensation claim with your employer, who, in turn, forwards it to their insurance provider. The insurer will then review your claim to determine three things: the validity of the claim, where you’ll seek medical treatment if it is, and how much compensation you’re entitled to.
3. What Does Workers Compensation Cover?
Each approved workers compensation claim covers five main forms of expenses:
- Medical Care: consists of anything related to the immediate diagnosis and treatment your injury or illness, such as the cost of renting an ambulance and all associated hospital bills
- Temporary Disability: pertains to any potential earnings you lose while recovering
- Supplemental Job Displacement: refers to the cost of work rehabilitation aimed at helping you get back to full working capacity
- Permanent Disability: consists of supplemental wages should you be unable to fully recover from the accident
- Death: includes funeral expenses and financial aid to your dependents in case the accident leads to a fatality
4. Can All Employees Avail of Workers Compensation?
All regular employees can avail of workers compensation. Individual contractors, domestic workers, and casual or seasonal employees, on the other hand, are not entitled to the benefit according to California’s workers comp laws.
5. How are Workers Comp Insurance Benefits Calculated?
Since the regulations on workers compensation vary from state to state, the is no single method of calculating the benefits you can claim. In general, however, there are three main factors considered:
- Nature of your job
- Your income
- The number of employees in the company’s payroll
6. Do Employees Pay for Workers Comp Insurance?
No. Workers compensation is not like other employee benefits that automatically get deducted from your salary. Instead, it is shouldered solely by your employer.
7. What Do I Do After My Workers Compensation Claim Gets Approved?
The next step is to get treatment from you employer-approved medical facility. Just be sure to collect all receipts for medical procedures and medicines so you can be properly compensated for all associated expenses.
8. How Long Does My Employer Have to Process My Claim?
According to California workers comp laws, your employer has 90 days to approve or deny your claim. If it is denied, then you are given the opportunity to file an appeal. When this happens, it’s best to seek help from a competent workers compensation lawyer to ensure that you’ll get a fair settlement.
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At the end of the day, there’s no way to be 100% safe from accidents at work. This is why it’s important to familiarize yourself with workers compensation insurance and the claims you are entitled to. If you or a loved one need help with a workers comp claim, call us for a free legal consultation today.
Do you have more questions about workers compensation? Post them in the comments section below!