Yes, you need a workers’ compensation insurance policy, even if you have fewer employees. The fact is that any business working either part-time or full-time is vulnerable to lots of expenses if its employees become sick. Even if your business is statutorily exempt from buying coverage, you should properly weigh all the catastrophic costs of not buying the insurance against the savings which you will otherwise make by not buying it.
One claim for a serious injury caused to a worker could bankrupt your business, and therefore, it makes sense to go with a workmen compensation insurance policy that gives legal liability coverage to you as an employer.
A workers’ compensation insurance plan offers various benefits to injured workers to make up for lost wages that may arise due to an accident or injury in the workplace. It is a boon for both employees and employers. It gives employees several benefits which help in motivating them and thus, also curtail attrition. Similarly, employers can also protect themselves from the legal liability that may arise due to the injury of workers.
Understand the workers’ compensation insurance policy in detail :
Mainly, a workers’ compensation insurance policy has two parts – Part One: Workers Compensation and Part Two: Employers’ Liability
- In the case of Part One, the insurance company pays whatever the compensation is as per the Workmen Insurance Act. Unlike other insurance policies, here, worker compensation coverage has no ceiling limit on the policy amount. It means the employer’s entire statutory obligation, i.e.; the compensation that has to pay as per the Act to the insurer.
- In the case of Part Two, the insurance policy offers coverage to an employer against the claim. Raised by the employee for work-related bodily injury or illness that may arise in the workplace.
“Part Two” of the policy provides coverage for an employer sued by an employee for work-related bodily injury or illness that isn’t subject to state statutory benefits.
Read More: Things Small Businesses Should Know About Workers’ Compensation Insurance Policy
In certain situations, the employer’s liability also offers coverage to an employer, called third-party over suits. It means an injured worker files a legal case against someone who later on holds the employer responsible for the accident. For instance, an employee gets injured at the workplace while working with a machine and files a case against the machine manufacturer who later sues the employer claiming that the accident was caused due to modifications in the machine.
Here are some of the events covered under the workmen’s insurance policy –
- Injuries caused at the workplace
- Occupational ailments
- Workplace accidents
- Medical treatment
- Lost wages
- Rehabilitation
- Death
- Lawsuits filed by injured workers
In most cases, on-the-job injuries are covered by a workers’ compensation insurance policy on a no-fault basis. This means, paying benefits regardless of who is to blame for the accident or injury. It means the employer doesn’t admit the responsibility for the accident and pays compensation to the worker without having to sue. However, there may be certain exceptions as well. For instance, an employee may not get coverage in case of an injury when the employee violates the company’s policy.
Are accidents that occur outside the workplace covered under Workmen Compensation Insurance?
In certain cases, as an employer, you are not liable to pay compensation for those accidents which happen outside the workplace. However, there are certain situations covered when accidents occur outside the workplace –
- Business trip
- Attending a business event
While, many business owners consider workmen’s compensation insurance as the expense only, however, the reality is that this policy can safeguard you from litigation that may arise when an employee gets injured or meets with an accident.
Read More: 10 Questions of Workmen Compensation Insurance Answered
A reduced number of claims can result in a lower premium for the Workmen Compensation policy
- Carefully access the work atmosphere by investigating how safe office equipment is. Or whether has to repair or replace
- Creating a safe working atmosphere by imparting training to employees on workplace safety and offering updates and giving useful tips on accident-free work
- Making suitable provisions so that injured workers can rejoin the office as soon as possible
- Starting an employee wellness program which should bolster a healthy working life and fitness as it will help in reducing the number of injuries on the job
In 2016, the Lok Sabha passed the Employees Compensation (Amendment) Bill, which increased the compensation amount paid to the worker or their dependents from Rs 50,000 to Rs 1 lakh in case of workplace injury.
Overall, every business owner should buy a workers’ compensation insurance policy. If they want to protect themselves from the legal liability that may arise due to injury caused to workers. In most cases, buying a workers’ compensation insurance policy is in your best interests.
How to buy a workmen’s compensation insurance policy?
In today’s internet-driven world, it is feasible to buy workmen’s compensation insurance policies right from the comfort of your home with the help of SecureNow. By entering a few details about your requirements, rider, if any, etc.; you can obtain insurance quotes from leading insurers and then choose the right policy accordingly. The most important feature of SecureNow is that it not only helps in buying the best workers’ compensation insurance plan. In fact, it also helps at the time of claim settlement. Moreover, for your every query, you can contact the experts at SecureNow.
Indeed, buying an insurance policy has become much easy and more flexible with SecureNow.
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.
