What is ‘voluntary compensation coverage’ in workers' compensation?

Voluntary compensation coverage is a form of insurance that provides benefits to employees for injuries that occur in the course of their employment, but these benefits are not mandated by California workers' compensation laws. This type of coverage is typically sought by employers who want to extend benefits to certain workers who may not be covered under the standard workers' compensation rules, such as certain independent contractors or employees working in roles not strictly required to be covered by the state system.

This means that employers can choose to provide this additional coverage to offer more comprehensive protection for their workforce, improving employee relations and satisfaction. It also helps ensure that workers, who may not have legal entitlements due to their employment status or other circumstances, still receive necessary financial assistance and medical care in the event of a workplace injury. In essence, voluntary compensation coverage acts as a supplemental benefit designed to fill any gaps not covered by the standard mandated systems.