Workers' compensation systems often vary from state to state. However, employers usually pay for workers' compensation benefits in one of three ways: through state-run insurance programs, private insurance companies, or via direct payments to their employees.
After a workplace accident, the company providing your workers' compensation benefits may or may not be your employer. Regardless, the benefits will be the same in either case. However, you must know which organizations may be in charge of processing your claim.
State-Run Insurance Programs
In many states, employers may choose to procure workers' compensation insurance through state-administered programs or a state insurance fund. These types of programs are usually administered by an individual state's department of commerce or labor department. Generally, state programs such as these are chosen by employers with few employees or industries where work-related accidents are infrequent.
State programs are usually created to compete with private insurance companies and keep costs down. That way, companies with less frequently occurring injuries can opt for a less expensive state program that provides the coverage they need.
If a state-run program covers your employer, the agency responsible for the program will be responsible for paying for your workers' compensation benefits. In essence, the state department will act as an insurance company would.
Insurance Companies
Your employer may also choose to pay a premium to an insurance company to obtain workers' compensation coverage. Private insurers' policies are often more expensive than state programs, but they also offer broader and more comprehensive coverage. Furthermore, when an employer chooses to pay an insurance company, they often prevent their employees from suing them directly after an on-the-job injury.
If the company you work for has a private insurer, they will be responsible for accepting and processing your claim. However, this is often not as easy as it sounds.
After a work injury, filing a claim with an insurance company can be complicated. Rest assured that some insurers will go out of their way to avoid honoring their policies and save money in the process. That means your claim could be delayed indefinitely or even denied altogether.
In these cases, working with a Los Angeles workers' compensation attorney, such as C&B Law Group, may be your best alternative. The attorney will stand up to the insurance company on your behalf and increase your chances of receiving the compensation you deserve.
Self-Insurance
In many states, employers have the option to "self-insure." However, they will have to demonstrate that they have sufficient assets and equity to provide adequate coverage for their employees. Also, states often require these companies to verify that all employees can receive the benefits owed to them.
These large companies often use "third-party administrators" to deal with claims. This administrator handles all the paperwork and the management of each claim. Further, they will pay the injured worker directly on behalf of the company.
If your employer is self-insured and you suffered a work-related injury, talking to a workers' compensation attorney near you may be an excellent idea. Your employer may dispute your eligibility since they have a lot of money at risk. However, your attorney will take care of defending your rights at all times while you focus on your recovery.
If you have further questions about the workers' compensation process, consider speaking with a California workers' compensation firm, such as C&B Law Group. These experienced attorneys offer free consultations, so don't hesitate to call them if you want to know your case's value in minutes.
