Workmen Compensation

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Workers’ Compensation Insurance offers legal liability coverage to employers. It 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 in case of injury or death of an employee while on the job. Employees also stand to benefit from it as they do not have to bear the huge medical treatment costs in case of injury. However, there are certain myths related to Workmen Compensation Insurance Policy.

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 Workmen Compensation insurance policy.

Myth 1:

My employees will not get injured if I give them a safe working atmosphere.

Reality: As an employer, it is your prime responsibility to offer a safe and 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 matter how unlikely it may seem, preparing for accidents at the workplace is a wise thing to do. Being safe than sorry is good!

Know more about Workmen Compensations

Myth 2:

Workers’ Compensation is only for large companies.


Even if you have ten workers, you need a workers’ compensation insurance policy. It is strongly advised that you buy this policy even though it is optional. In the absence of this policy, you could have to bear huge expenses when held liable for workplace injuries.

A worker’s injury can affect any organization, irrespective of its size. Even with a total workforce of 20, if six are injured then you are missing out on a lot of productivity.   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 workmen compensation insurance policy.

Myth 3:

I already paid the compensation under worker’s compensation insurance, so my role as an employer is over.


An employer’s role does not end when it pays the compensation with the help of a policy.  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. Often, it is not only the monetary benefit that employees need. But they also value the sympathy which their employers extend towards them. Moreover, an employer can also find a new job role for the worker before he/she rejoins after recuperation.

Myth 4:

There is no need to buy workmen compensation insurance policy if most employees are located out of the office.


Even if your employees are working from other states, you would need to buy 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.


It is good to 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.

Read More: What is covered under Workmen Compensation Insurance Policy?

Myth 6:

A worker’s compensation insurance policy does not cover part-time employees.


The status of an employee doesn’t matter when you apply for a worker’s compensation insurance policy. This policy includes any employee on the payroll – be it part-time or a full-time employee.

The moral of the story is: Don’t believe in myths and protect your company with a workers’ compensation insurance policy. You won’t regret your decision!

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