Running a Factory? Here’s Why You Need Workmen Insurance

Irrespective of the type of business, there is always a risk of workplace hazards. However, this risk is comparatively higher in factories than say in offices. People hired in many small and big factories often have to work in a comparatively unsafe environment than those working in other job types. They might be exposed to biological, chemical and physical hazards at their workplaces.

If you own a factory in India which manufactures certain kinds of products, you would usually be aware of the possible dangers. It is your responsibility to protect your employees from facing injuries, while also defending yourself against financial and custodial penalties. Moreover, the lawsuits arising out of accidents at the factory can cost you a fortune in terms of money as well as your reputation.

Irrespective of the type of business, there is always a risk of workplace hazards. However, this risk is comparatively higher in factories than say in offices. People hired in many small and big factories often have to work in a comparatively unsafe environment than those working in other job types. They might be exposed to biological, chemical and physical hazards at their workplaces.

If you own a factory in India which manufactures certain kinds of products, you would usually be aware of the possible dangers. It is your responsibility to protect your employees from facing injuries, while also defending yourself against financial and custodial penalties. Moreover, the lawsuits arising out of accidents at the factory can cost you a fortune in terms of money as well as your reputation.

This is why it is essential to buy workers compensation (or employees compensarion) insurance as it comes with several benefits suitable for your business.

Workers compensation insurance pays for the treatment of employees who get hurt during their employment. This can be the result of an accident, such as a fall which hurts the back of an employee, exposure to a hazardous chemical or to heat, which are both common in factories.

Here are a few reasons why you must have employees compensation insurance:

To Abide By The Related Laws

It is mandatory by law that the employers need to provide compensation to working people for injuries resulting from workplace incidents. In some cases, such incidents may result in legal action against your firm.

If you have workers compensation insurance, this involves the insurer to pay for the compensation to employees in case of an injury or even death. This insurance enables you to make the payment for lost wages, medical costs, and any occupational rehabilitation expenses.

To Prevent Financial Losses

Workplace accidents cannot be foreseen but can cause serious consequences. Imagine if one of your factory workers faces an accident and hurts a leg. You will require to pay for the medical expenses, which can be sizeable. His family members can also demand compensation for loss of income in case of temporary or permanent disability.

If you have a workers compensation insurance in place, you need not worry about the financial burden on you.

To Prevent Legal Hassles

Your inability to pay for the medical expenses or for the loss of income to the injured employees may end up in a claim arising against you. However, workers compensation insurance, also called employees compensation insurance can help you avoid getting into legal battles especially those against your employees or their families. It pays the necessary compensation without affecting your business. It also covers the defence costs arising out of lawsuits.

To Maintain Productivity

Incidence of severe workplace injuries among your employees can result in lack of motivation amongst the workers. Moreover, if you have injured or sick workers, the rate of absenteeism will be high, resulting in low productivity.

Workers compensation insurance provides peace of mind as it takes away the burden of paying compensations off your shoulders. The policy should be an essential component of your business, as it benefits both you and the employees.

To Get Tax Benefits

Another aspect of business that a workers’ compensation insurance impacts positively is your tax liability. You might be looking for ways to reduce the amount to be paid as income tax for your business. Just like health or life insurance, you can also avail of tax benefits on the premiums you pay towards a workers compensation insurance policy.

We at SecureNow, offer workers compensation insurance from different insurers. You can compare and choose the most suitable plan according to your business needs to get maximum coverage. We collaborate with leading insurers so that you can get the best plan at competitive prices.

Maintaining workplace safety is one of the core responsibilities you have, being a factory owner. So, make sure you have chosen the right workers compensation insurance coverage to protect your business from losses and keep your employees’ health safe.

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