In the State of California, any business with at least one employee who is not the sole proprietor must provide workers compensation insurance. The coverage is designed to provide financial protection for employees who are injured while performing their duties in the workplace, and protect business owners from getting sued by their employees. Most of the protection provided by workers compensation insurance falls into one of four categories: medical treatment, disability, rehabilitation, and death and funeral services.
Medical treatment coverage provided by workers compensation insurance can be used to pay for doctor visits, hospital stays, emergency room visits, medications, therapy, and rehabilitation treatments. Coverage amounts will vary pretty widely depending on which plan a business owner chooses to buy, but most of them include coverage for additional equipment like crutches and wheelchairs.
Workers compensation can help cover a worker’s wages while they’re unable to attend due to their covered injury. The amount of coverage given will depend on the severity of the injury sustained. Insurance companies will classify covered injuries into one of four categories: temporary partial, temporary total, permanent partial and permanent total.
With some injuries, simply getting medical attention isn’t going to be enough. If someone sustains significant damage to one or more limbs, or are off their feet for an extended period of time, they may need to attend rehab to restore their ability to move freely. Workers compensation insurance provides coverage for physical and/or cognitive therapy as well as vocational rehabilitation to help an employee learn new skills if they will be unable to perform their old job after their injury.
Death and Funeral Services
If someone is killed on the job, workers compensation insurance may provide benefits to the deceased employee’s immediate family. The benefits can help cover funeral expenses as well as provide for lost wages.