Operating a business means taking risks, but when it comes to legal matters related to workers’ compensation insurance coverage, risks need to be mitigated or else you could face financial hardship and even have your business threatened. Knowing where your company stands in terms of risk is key to planning a strategy to ensure that your business can continue to thrive for years to come, and having legal advice on risk management from an experienced workers’ compensation defense lawyer can help you ensure your business stays on the right side of the law.
The laws governing workers’ compensation in California are strict and rigid, and disobeying them—even inadvertently—can lead to some serious, even ruinous, penalties for employers. For example, uninsured employers could face jail time and major fines if an employee goes to file a claim for workers’ compensation, and the employer could be compelled by the courts to pay all benefits to the injured employee. So while foregoing insurance could save money over the short term, it could add up in major ways over the long haul.
Insurance companies provide a benefit to both employees and employers, offering coverage in the event of an employee becoming injured and requiring workers’ compensation benefits for medical care costs and costs of living while recovering from injuries financial burden to small business owners. Some employers opt to self-insure, meaning that they take on the costs of workers’ compensation benefits themselves (or with a pool of other networked self-insured employers) whenever a claim is filed. Self-insurance can save employers the costs of annual premiums, but if multiple claims are filed by multiple employees at once, it can be very costly. Larger companies with more employees are often better off getting workers’ compensation insurance through an insurance carrier.
By learning about the risks related to workers’ compensation and your business, you can be better prepared to face whatever comes your way. We offer workers’ compensation defense to businesses of all sizes and can help you with counseling and advice to make sure your risks are minimized as you move forward with your business endeavors.
If you are concerned about where your business stands with regard to workers’ compensation insurance coverage, you can get advice from counsel to minimize risk in Long Beach at Sacks & Zolonz, LLP. We are workers’ compensation defense experts, and we can work with you to develop a strategy that will help you keep your business financially afloat or offer advice and information about coverage issues. Legal risks with regard to workers’ compensation can be costly if they go unmitigated for too long, potentially resulting in dissolution of the business. Contact us today for a consultation with one of our expert attorneys and take the first step toward getting informed about workers’ compensation risks.