What happens when an employer does not carry workers' compensation insurance?

A work injury that results in medical expenses and time off the job can be frustrating, but in most cases, you can rely on workers' compensation to help you with the costs. Unfortunately, despite the legal requirement to carry this insurance, some employers do not.

The California Department of Industrial Relations explains that if you end up in this situation, you have the right to file a claim with the Uninsured Employers Benefits Trust Fund.

The process

You can seek help from the workers' compensation office to file your claim. It can be complicated because you need to first turn in a standard claim form. Then, you will need to file an adjudication of claim form. Then, you make your UEBTF claim.

The benefits

Upon approval of your claim, it will pay you the benefits you would have received from workers' compensation. Note that the UEBTF is not an entity. It is the Workers' Compensation Appeals Board that makes the decisions on approval and denial of benefits paid out from the UEBTF.

Your employer

The process to collect from the UEBTF is separate from any penalties that your employer may face. In addition, you may be able to file a civil lawsuit against your employer, depending on the situation. It is worth checking into because you could sue your employer for liability for your injuries and associated losses.

The UEBTF is a benefit for you. It is there for people whose employers do not follow the law and provide workers' compensation insurance to ensure that they receive the benefits rightfully owed to them under the law.