Carrying Worker’s Compensation Insurance is a must for employers in California

Since Alabama and Georgia introduced Employer Liability Acts in 1855, 26 other U.S. states adopted similar provisions between 1855 and 1907.  By 1949, all states have adopted some form of worker’s compensation laws.  It provides medical benefits and wage replacement to employees who are injured in the course of employment and provide protection for employers.  Worker’s comp requirements vary from state to state but all states require that businesses should carry some form of insurance to provide medical benefits for injuries caused while on the job and compensate for loss of wages.

The worker’s compensation insurance became mandatory in California in 1913.  Article XIV, Section 4 of the California Constitution contain provisions for workers compensation and requires carrying insurance by employers with one employee.  It is a no-fault system meaning that employees don’t have to prove that the injury was someone else’s fault in order to qualify for benefits for an on-the-job injury and the employer is not responsible even in negligence and this form of compensation is the exclusive remedy .  The California program is a $17 billion insurance program.  California’s system is an immense one receiving over 300,000 claims a year.