5 Factors That Determine Workmen Compensation Insurance Premium

Workers’ compensation insurance is one of the most significant expenses for businesses, particularly those related to high-risk industries with sizeable payrolls. Workplace injuries and illnesses can become costly affairs. Also, it is mandatory by law for employers to pay compensation for work-related accidents. It is, therefore, better to buy a workmen compensation policy online to avoid paying huge compensation or medical expenses arising out of these accidents from your pocket. 

Selecting the right workmen compensation policy online often becomes as much of a question about finances as it is about proper coverage. For small businesses, especially, the cost of insurance needs to be taken into consideration. It is crucial to understand how premiums are calculated before buying a workmen compensation policy online or offline

Safety and human resources professionals are often in charge of analyzing the many factors that influence the premiums of workmen compensation policy. Once you understand the basics of premium calculation, it’s easier to identify areas where you can reduce your costs.  

Let’s look at some of the crucial factors that affect the premium of workmen compensation policy:

  • Industry Type

The risk of workplace hazards is present in every sector. It is the degree of this risk that differs. For instance, physically demanding work usually has higher risks involved in terms of workplace injuries. People working in industries such as manufacturing units, mines or transportation have exposure to a more hazardous environment leading to health issues. That is why workers compensation insurance premium varies widely by industry and job type.

With the rising costs of healthcare treatment in India, you can offer financial protection to them by buying a workmen compensation policy online. 

  • Number of Employees

The number of employees also affect the premium you need to pay while buying a workmen compensation policy online. The more people you have hired in your firm, the higher the premium will be. It is difficult to pay for compensation without insurance. It is, therefore, crucial to safeguard your business from legal liabilities, irrespective of the size of your organization. 

  • Duration of The Policy

The period for which you buy a workmen compensation policy online also determines the cost of your premium. For instance, if you buy the plan of a term of one year, your premium will be less in comparison to a policy with two years of tenure. You can even ask your insurer for a discount while buying for the policy for a longer period. 

Not having sufficient workers compensation coverage can also pose a massive risk to you, your employees as well as your business.

  • Safety Standards

Every organization has its own set of safety regulations as per law. The premiums you need to pay while buying a workmen compensation policy online also depend on how strict the safety norms are. For instance, if you own a factory that has a risk of catching fires and you have a proper setup for extinguishing in case of a casualty, your premiums may become lower.

Practicing effective risk management techniques can also lower your premium. It will also reduce the chances of claims arising out of workplace mishaps. As an employer, you need to minimize the accidents at the workplace.

  • Past Claim Experience

If your organization has a history of claims, your premiums may be higher than usual. To an employer, it creates the impression that your workplace has a high-risk factor associated with it and is more likely to claim in the future too. 

We, at SecureNow, offer workmen compensation policies online that covers medical expenses from injuries arising from accidents during the course of employment. As the hospitalization costs can burn a hole in your pocket, it is better to buy a workmen compensation policy online as a financial backup for your business. It will help if you make it a priority to make all your employees aware of what is covered, what they are entitled to in the event of a work-related illness or injury, and how your firm can support them. 

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