All employees in California must be covered by workers compensation insurance. This applies no matter what the size of the company and  even those businesses with only one employee must ensure he or she is covered.

Workers compensation covers employees for any injuries or illnesses suffered while in the workplace or caused by their work. This type of insurance also protects employees who live outside the state, but work in California. It must be emphasized that the compensation is only available for injuries and illnesses relating to work. Any other compensation claims must be dealt with via the workers own health insurance.

When talking about making compensation claims it is important to realise that the individual worker does not need to concern himself with arranging any policies.
This is because the employee does not have to pay any workers compensation insurance premiums as the employer must pay 100 per cent of the cost. Workers are also protected from any actions against them by their employers should they make a workers compensation claim. In such instances it is illegal for the employer to fire or discipline an employee for making a claim. This an important principle to grasp as previously many workers have missed out on receiving the compensation they were entitled to because they were reluctant to sue their employers through fear of reprisals.

The crucial element of workers compensation insurance is that it is based on a “no-fault” principle. This means the employee does not have to prove his work-related illness or injury was anyone’s fault.

Workers compensation insurance offers employees several benefits. The employer must pay the medical bills for work-related injury and illness. This relieves the worry of the employee having to meet medical expenses. Temporary disability benefits cover wages lost while the employee is recovering. There are also permanent disability benefits if the employee does not recover from the work-related illness or injury. Workers who do not completely recover or who do not want to return to their previous employer are also eligible for supplemental job displacement benefits. These are vouchers towards the cost of retraining. There are also death benefits payable to spouses and children should the employee die thru his work-related injury or illness.

Should an employee suffer a work injury he or she should inform the employer or supervisor straight away. If emergency treatment is required the employee should also tell the health provider the condition is work-related.

The employer is under an obligation to give any employee seeking to make a workers compensation claim a claims form within two weeks of hearing of the incident.
Disputes over worker insurance claims are rare, but when they do occur they are usually with the employer’s insurance provider.

The state’s Division of Workers Compensation, which oversees the delivery of workers compensation benefits, can resolve such disputes thru its Information and Assistance Unit. Employees may instead choose to appear in front of a judge at any of the DWC offices to decide their workers compensation insurance claims.