Workers compensation is a very important type of insurance since it used to protect employees within the workplace. This type of insurance is often necessary for occupations involving dangerous, hazardous or high risk tasks that could lead to injury. Jobs that involve physical activity, unstable environments or the risk of death; are usually covered by workers compensation insurance or workers comp.
The state of California has workers comp laws and insurance rules in place for employers and their workers. These laws are created on the state level and then implemented by cities, local communities and then by companies. Various cities within California have their own unique set of workers comp laws and Camarillo, California is no exception.
Camarillo is a small city with at least 66,000 residents. The people who live and work within this town are primarily employed within the field of education at the college and public levels. So, there are not a lot of hazardous occupations for people to be involved in within the city of Camarillo. The medical field is another major employer within this region.
Keep in mind that farming is a big deal within Camarillo. There is also a freight industry and people work within power. These individuals will more than likely need high levels of workers comp as opposed to those who work within the education field. There are also some manufacturing and constructions jobs in this place as well.
People who are employed within these industries typically suffer a higher rate of injury. As a result, they will need to have more insurance than people who work behind a desk or within a low-risk for injury environment. The following information will explain the troubles that are ahead for workers comp insurance within the city of Camarillo, California.
Big Problems with California’s Workers Compensation Insurance
Here are 3 big problems that are impacting the nation as a whole in terms of workers compensation insurance.
1. More inexperienced people are entering into the workforce.
2. Cost shifting or moving employees around to higher paying insurance coverage.
3. Workers compensation insurance fraud.
These three big problems are not only impacting the employment and insurance fields on a national level; they are also affecting states, cities and companies at the local level. This situation is also evident inside of Camarillo. A closer look at these problems will now be addressed.
1. Inexperienced Workers
The U.S. economy is starting to move in a positive direction. As a result, many people are now entering the workforce. They are taking on various entry level jobs such as those inside of the manufacturing field or inside of construction.
Due to their lack of experience, entry level workers are now getting hurt. This in turn is putting more of a strain on a company’s ability to provide workers comp coverage for their employees. Training employees how to perform a job in the right way is extremely important so that companies will not have to pay out extra money for workers comp claims in Burnham v. Superior Court.
2. Cost Shifting Employees
This type of situation is very complex when it comes to workers comp insurance. There are physicians and hospitals that are now listing certain injuries under workers comp type of claims. They do this so that they can receive more money and to alleviate insurance cost for health insurance providers. This type of practice is not necessarily illegal but it can border on the line of being unethical. Cost shifting has a tendency to drive up workers comp claims and helps to offset those costs by putting the pressure onto employers (and in some cases employees) to cover those costs.
3. Workers Compensation Insurance Fraud
At least 1 in 4 insurance fraud scams are related to workers comp claims. This is a clear indication that there is a serious problem with workers comp insurance as a whole. Since so many people and a few companies are trying to get over in this regard, workers comp insurance rates are going up for everyone. Including businesses and people that reside within Camarillo, California.
Keep in mind that the state of California is number one in terms of most claims filed and most money spent on workers comp. Once changes are made to California’s law the same will happen everywhere within the nation.
This state has a lot to deal with in terms of workers comp insurance, claims and the whole system impacting how workers are covered within the state. Camarillo is a city that is a part of this process. They too are subject to the same factors that harm the workers compensation system within the state of California.