If you are running an organization, there is always a risk, even if small, of injury to the hired workforce. Accidents at the workplace can occur at any time, depending on the type of work or operations performed in your organization. Any accident makes the employer liable to pay for the medical expenses incurred. This risk factor makes it essential for you to buy a workmen compensation insurance policy from a good insurer. It provides medical coverage for the treatment of any injuries that happen to employees during their employment. This type of policy is not limited to hospitalization expenses for critical injuries but also covers the cost of getting medical treatment on an out-patient basis.
Many employers are under the misconception that the benefits of a worker’s compensation policy are limited to the medical expense coverage only, which is not true. Several other benefits exist which is why you must invest in such a policy.
Here are three significant benefits related to workers compensation insurance which you might not know:
- It Also Covers Legal Liabilities
Consider this example – There was an accident in a lock manufacturing unit where, on average, one hundred people worked in plant operations. It caused critical injuries to a few employees who filed a court case against their employer. In such a situation, it became difficult for the employer (the owner of this unit) to deal with the lawsuit in the labor court, pay for the defense costs, and also pay the compensation demanded by the injured individuals.
Buying a workmen compensation policy is highly beneficial to tackle such situations with ease. As per the defined terms and conditions, the policy will cover the employer’s legal liability arising from a workplace accident to workers. It will also pay for the defense costs as well as the worker’s compensation benefits as decided by the labor court. Getting the legal liability coverage means significant money savings for an employer, which he would have had to otherwise pay by himself.
- It Includes Coverage for Occupational Diseases
Some workplaces run processes that can have adverse effects on the overall health of the hired workers. For instance, a metal factory that uses chemicals to finish their products can cause harm to the skin of the workmen. Similarly, there are other occupational diseases like asthma, allergic dermatitis, musculoskeletal disorders, to name a few, which can occur because of work-specific or work-related conditions.
An employer need not worry about occupational diseases as workmen compensation insurance usually cover these. One can ask one’s prospective insurer about the inclusion clauses related to these diseases which are specific to the industry the business operates within. If the policy does not cover certain specific diseases by default, the employer can ask the insurer for add-ons that can cover these diseases. Furthermore, if these diseases lead to critical health conditions, then the injured will get compensation as per labor laws.
- The Premium for Workmen Insurance Depends on Various Factors
Some employers believe that a one-size-fits-all policy offers adequate worker’s compensation benefits. Unfortunately, this is a myth. In general, the accidental risk varies from one business to another. Coverage under a policy depends on several factors, including the employer’s industry classification, the nature of work, the policy duration, safety standards, coverage required, and others. Accordingly, the policy specifics and premium to be paid to buy a workmen compensation insurance varies.
If you have been buying and renewing workmen compensation insurance for a long time, then your past claim experiences also can have an impact on the premium you need to pay.
For every employer, choosing a suitable policy to get adequate worker’s compensation benefits is crucial. One must complete the required research about the policy coverage, its exclusion clauses, and the various insurance companies that offer this type of insurance.
You can also connect with the expert team at SecureNow to get help in buying a workmen compensation policy for your company.