What Can You Do If Your Employer Does Not Have Workers’ Compensation Insurance

Workers get injured at their job in several different ways. Many go through the workers’ compensation insurance process to claim their lost wages and have medical expenses paid.

Unfortunately, too many employers fail to purchase workers’ compensation insurance for their business. Injured employees can gain financial damages in a suit against their employer for failing to have workers’ compensation insurance on file.

Employers are Liable for On-the-Job Injuries

Under California labor law, all employers must have workers’ compensation insurance, and failure to have some form of benefits available is a criminal offense. Also, they must post signage in the workplace that provides information on the company’s workers’ compensation coverage for all employees. Failure to post the signage provided is considered to be a misdemeanor with a fine of $7,000 per violation.

Employers can purchase workers’ compensation insurance from a licensed company or the California State Compensation Insurance Fund. An injured employee loses their right if they fail to file a workers’ compensation claim within 30 days of the accident.

Also, the California Labor Board can issue a stop order against your employer for failing to have workers’ compensation insurance. In plain English, the business must cease operations until workers’ compensation insurance has been purchased and filed with the state.

Thousands of Businesses are Non-Subscribers of Workers Compensation Insurance

It is wise for all employers to have some form of workers’ compensation insurance. Their biggest complaint is the insurance rates are too high, especially in comparison to other cut-rate insurance plans. Still, it’s surprising that one-third of all employers in California have elected to go without workers’ compensation insurance.

It’s the classic case of going for “profit over safety,” a business decision that offers little to no protection for injured workers. However, they can seek compensation and full benefits from their employer in any possible civil lawsuit.

Unfortunately, many injured employees have little knowledge of their rights at the workplace. You must fully understand your company’s workers’ compensation package. And raise some concerns if it is a watered-down benefits package.

The Benefits of Suing Your Employer

There are benefits to suing your employer for not having workers’ compensation insurance. You can secure a larger settlement than being limited to a cap limit set by your employer. In California, the monetary limit is a maximum of $100,000 per employee. However, injured parties can establish their price in a civil lawsuit against their employer for personal injury damages.

Too often, the injured party faces an uphill climb in a potential lawsuit against their employer for failing to have workers’ compensation insurance. Do not feel pressured to accept a predetermined settlement offer because of fear the legal system is slanted in the direction of your employer.

If your employer does not have workers’ compensation insurance on file, then the table has turned in your direction. A judge may rule for a financial settlement that includes all medical expenses, lost wages, future pain and suffering, and mental anguish from the accident.

An Employee Must Prove Their Employer’s Negligence 

To win the case, the injured party must prove negligence on the part of their employer. The evidence must show the safety training provided was inadequate. Or their employer failed to hire a large enough work crew to complete the job. Too often, the work environment is not safe.

The opposing side will offer testimony from safety experts that provide a different opinion on the work conditions. They will attempt to show how the employee failed to comply with their workplace safety regulations. Their actions attributed to the accident in question.

If you sustained a work-related injury or were denied a workers’ compensation claim, contact The House of Workers Compensation for help. We offer a free consultation that helps you better understand your rights at the workplace. Every employee deserves financial compensation for their injuries.