If you are running an – be it small or big, there is always a risk, of injury to the hired workforce. Accidents at the workplace can occur at any time. The risk of accidents depends 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 to buy a workmen’s compensation insurance policy from a good insurer. It provides medical coverage for the treatment of any injuries suffered by employees during their employment. WC policy is not limited to hospitalization expenses for critical injuries only. It also covers the cost of getting medical treatment on an outpatient basis.
Many employers are under the misconception that the benefits of a workmen’s compensation policy are limited to medical expense coverage only, which is not true. Several other benefits exist which is why you must invest in such a policy.
Important benefits of WC Insurance policy
Here are three significant benefits related to workmen’s compensation insurance which you might not know:
Covers legal liabilities
Consider the below case:
There was an accident in a lock manufacturing unit where, on average, 100 people worked in plant operations. It caused critical injuries to a few employees who filed a court case against their employer. However, it became difficult for the employer to deal with the lawsuit in the labour court. The owner found it challenging to pay for the defence costs, and also pay the compensation demanded by the injured individuals.
Buying a workmen’s compensation policy is highly beneficial to tackle such situations with ease. The policy will help cover the employer’s legal liability arising from a workplace accident. It will also pay for the defence costs as well as the worker’s compensation benefits as decided by the labour court. The legal liability coverage would imply significant money savings for an employer. In case of no WC policy, an employer must pay for all the costs by himself.
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 using chemicals to finish their products can cause harm to the skin of the workmen. Similarly, there are other occupational diseases that can cause health hazards to hired workers. Diseases such as asthma, allergic dermatitis, and musculoskeletal disorders, can occur because of work-specific or work-related conditions.
An employer must not worry about occupational diseases as workmen’s compensation insurance usually covers these. Ask your prospective insurer about the inclusion clauses related to these diseases. These clauses are specific to the industry the business operates within. In case of exclusion for certain specific diseases, the employer can ask the insurer for add-ons to cover these diseases. Furthermore, if these diseases lead to critical health conditions, then the injured will get compensation as per labour laws.
Premium determined by various factors
Some employers believe that a one-size-fits-all policy offers adequate workmen compensation benefits. Unfortunately, this is a myth. In general, the accidental risk varies from one business to another. Policy coverage depends on several factors, including the employer’s industry classification, the nature of work and so on. The policy duration, safety standards and coverage required also determine the premium. Accordingly, the policy specifics and premium to be paid to buy workmen’s compensation insurance varies.
Your past claim experiences also can have an impact on the premium you need to pay for the WC policy.
Conclusion
For every employer, choosing a suitable policy to get adequate workmen compensation benefits is crucial. Complete the required research about the policy coverage, its exclusion clauses, and the various insurance companies that offer this type of insurance.
About The Author
Rahul Kumar
MBA Finance
With a wealth of experience in the insurance industry, Rahul is a seasoned writer specializing in articles related to workmen compensation policies (WC policies) for SecureNow. With 12 years of experience in the field, he has acquired in-depth knowledge and expertise in workmen compensation insurance, understanding its complexities and nuances. Their insightful articles provide valuable insights into the importance of WC policies for businesses and employees alike, offering practical advice and guidance on navigating the intricacies of insurance coverage. Trust him to deliver informative and engaging content, backed by years of experience and a passion for educating readers about insurance-related topics.
