Irrespective of the type of business, there is always a risk of workplace hazards. However, this risk is comparatively higher in factories than 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. Such people are more exposed to biological, chemical, and physical hazards at their workplaces than those working in IT companies.
Importance of taking workmen compensation insurance for factory owners
If you own a manufacturing unit in India, you would usually be aware of the possible dangers of operating a factory. As an employer, it is your responsibility to protect your employees from facing work-related 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 workmen compensation (or employees compensation) insurance for factory owners as it comes with several benefits suitable for a factory owner or businesses in perilous nature of work
What is Workmen Compensation?
Workers’ compensation insurance pays for the treatment of employees injured during their course of employment. This can be the result of an accident, such as a fall that hurts the back of an employee, exposure to a hazardous chemical or to heat, which are both common in factories.
Reasons to buy Workmen compensation insurance for factory owners :
1. Helps you abide by work-related laws
It is mandatory by law that employers provide compensation to working people for injuries resulting from workplace incidents. In some cases, such incidents may result in legal action against your firm.
When you have workers’ compensation insurance, the insurer will pay for the compensation to employees in case of an injury or even death. It enables you to make payments for lost wages, medical costs, and any occupational rehabilitation expenses.
2. Prevents 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 be required to pay for the medical expenses, which can be financially burdensome. His family members can also demand compensation for loss of income in case of temporary or permanent disability.
Having worker’s compensation insurance in place will ease your financial burden.
3. Avoids 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 lawsuit arising against you. However, having workers’ 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.
4. Maintains productivity
Incidence of severe workplace injuries among your employees can result in a 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 compensation off your shoulders. The policy should be an essential component of your business, as it benefits both you and the employees.
5. Offers tax benefits
Another aspect of business that 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.
How SecureNow helps you in getting the right workmen’s compensation policy?
We at SecureNow, offer workers’ compensation insurance from different insurers. You can compare insurance quotes online 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.
Being a factory owner, maintaining workplace safety is one of your core responsibilities. So, make sure you have chosen the right workers’ compensation insurance coverage to protect your business from losses and keep your employees’ health safe.
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.
