A Workers’ Compensation Insurance is a policy which offers legal liability coverage to employers and helps them satisfy the obligations imposed on them under workers’ compensation statutes. The policy is beneficial for employers as it helps them pay the compensation which could arise in the case of injury or death of an employee while on the job.
Though, it is an important insurance policy, many employers prefer to stay away from it due to myths floating around it. So, let’s debunk these myths to get more clarity on the insurance policy=
Myth 1: I give safe working atmosphere; my employees will not get injured.
Reality: As an employer, it is your prime responsibility to offer a safe and a conducive working atmosphere, but accidents can still arise that result in injuries. It is always useful to buy a workmen compensation insurance policy and prepare for any eventualities, however, no matters how unlikely it may seem. Being safe than sorry is good!
Myth 2: Workers’ Compensation is only for large companies.
Reality: Even if you have ten workers, you need a workers’ compensation insurance policy. Even if it is optional, it is strongly advised to buy this policy because you could still be held liable for workplace injuries.
A worker’s injury can affect any organization, irrespective of its size. It means, if you have total 20 workers at your construction site, out of which six are out due to injury, you are missing a major part of your workforce. Even if you’re not sued, the lost productivity will always cost you. Also, injured workers can also reach the court. So, make the smart move and buy a workmen compensation insurance policy.
Myth 3: I already paid the compensation under worker’s compensation insurance, so my role as an employer is over.
Reality: Once the compensation is paid through a worker’s compensation insurance, the employer’s most important role starts. It is necessary for an employer to maintain frequent contact with the employee to monitor their healing process carefully. By doing so, the employer will be able to know when the injured worker will rejoin them. Many times, it is not only the monetary benefit which employees are looking for, but they also value the sympathy which their employers extend towards them. Moreover, if an injury results in the change in professional duties, an employer can find a new job role for the worker before he/she rejoins after recuperation.
Myth 4: There is no need to buy a workmen compensation insurance policy if most employees are located out of the office.
Reality: Even if your employees are working from other states, you would need to buy a workmen compensation insurance policy. The geographic area where they reside will not make any major impact.
Myth 5: My employees are like my family members, they would never sue me.
Reality: It is good that you treat your employees like your family members but you are mistaking if you are not buying the policy because you think they will never sue you. No matter how long they’ve worked with you or how well you know them, there is still a chance that an injured employee or his/her family files suit against you. Without a workmen compensation insurance plan, you would have to pay all the damages by own that could run into lakhs. Also, without a proper insurance cover, employers leave themselves open to punitive losses/damages, pain, and sufferings along with hefty medical bills.
Myth 6: Part-time employees are not covered under a worker’s compensation insurance policy.
Reality: The status of an employee doesn’t matter when you apply for a worker’s compensation insurance policy. Any employee who is on the payroll will be considered under this policy, which includes both part-time and full-time employees.
The moral of the story is: Don’t believe in fairy tales and make sure your company is protected with a workers’ compensation insurance policy—you won’t regret your decision!
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