Why You Should Buy California Workers Compensation

If you are an employer then you must immediately seek worker’s compensation insurance for your staff. This is a legal and some would say moral obligation of every business owner. Whether you agree or not there are several reasons why you should buy California workers compensation coverage.

Take Care of Your Employees and They Will Take Care of You

People are more likely to stay in a workplace where they feel valued and protected. Knowing that they will be taken cared of right away if they get sick or injured increases their loyalty to the company. In this manner you are protecting the investments you have made in each employee (training seminars product-specific experience etc) by lowering the attrition rate. Having a healthy staff also means you keep the morale and productivity high around the office leading to steady sales and soaring profits.

Workers Compensation Insurance Provides You with Immunity

This type of insurance actually began as a compromise agreement. Before it was implemented employees who got sick because of workplace conditions or on-duty accidents sued their employer to get compensation. This often led to bitter and costly court battles on both sides as well as declining morale in the workplace. It was clear that labor and management would from with a shift in their manner of engagement. The worker’s compensation insurance cements the partnership between the two. It guarantees that employees are given ample assistance in times of need essentially ending the need for lawsuits.

Avoidance is Considered a Criminal Act

The Labor Code is very clear that it will not tolerate non-compliance. In fact it is considered a criminal offense that is punishable by both large fines and imprisonment. The fines could be up to $10000 plus $100000 in state penalties. The jail sentence could last as long as one year. Without insurance to take care of the injured employees the burden of support falls directly on the employer. Workers can file a civil action against the company as well as file a worker’s compensation claim. The best way to deal with this is to prevent it from happening in the first place through strict compliance.

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