There’s a lot to know about a workmen’s compensation policy. This type of insurance policy offers legal liability coverage to employers. It also protects employees from incurring financial burdens by providing them compensation in case of any injury or accident at the workplace. However, several small business owners consider it like any other extra and unnecessary expense. For this reason, they scout for various ways to avoid buying it. Also, some small business owners believe that accidents and injuries only occur in high-risk industries like manufacturing, construction, etc. Although, sectors like construction and mining are more accident-prone The risk is prevalent in other industries also such as insurance, finance, transport, etc.
Know more about the workmen’s compensation policy
Understanding the ins and outs of a workmen’s compensation insurance policy is necessary. Any business, irrespective of its size, should take steps to ensure the complete safety and welfare of its employees. Be it a better understanding of the policy coverage, its benefits, process, and the right filing method can help an employer avoid the complexities of expensive lawsuits.
Following are some important things you should know about workmen’s compensation insurance policy:
Even if you’re not required to have a workmen’s insurance policy, you will still need it
It is wrong to assume a workmen’s compensation insurance policy is an unnecessary business expense. This wrong notion can lead you to do away with spending on this policy. However, it is better if you could change your mindset. Without this insurance policy, you will put your business at significant risk. Companies without workers’ compensation insurance policies can face high fines along with potential lawsuits. An organization may face expensive legal lawsuits and get financially burdened if one of its workers gets injured on the job. This policy covers medical expenses and also compensates lost wages to the injured party along with death benefits if the injury is fatal.
Read More: Myths Related to Workmen Compensation Insurance Policy
Not taking WC policy may cause troubles
The decision to cut away spending on workers’ compensation policy may land you in trouble. You have to pay all the expenses from your pocket in the absence of a workmen’s compensation policy. Furthermore, your business has to incur financial losses if an employee stays out of business due to an injury at the workplace. Thus, it will result in the loss of productivity and possibly, you may also lose business contracts as well. Hence, many small business owners prefer to buy a workmen compensation insurance policy to save themselves from financial burdens. Some of the events which a Workmen Compensation Policy covers are :
- Death
- Permanent total disablement
- Permanent partial disablement
- Temporary disablement
- Legal costs incurred if any
It can help in retaining employees
Providing benefits to employees can keep them onboarded. In those businesses where employees work with heavy machinery and equipment or in a hazardous occupation, a workmen’s compensation insurance policy is required. It mitigates the potential risks of the business and also provides peace of mind to employees. Employees working with heavy machinery and equipment face a high risk of getting hurt and subsequently, facing a burden under medical expenses is a real scenario for such workers and their employers. Buying a workmen’s compensation insurance policy ensures that injured employees are covered fully. They would not have to bear medical expenses on their own.
It is not as costly as you think
If you think workers’ compensation insurance policy costs are prohibitive for your business, think again. There are various insurance companies offering coverage at lower premium rates. So, either you can buy the policy directly from the insurance company or take the help of corporate insurance advisors. BrokerslikeSecureNowcan also helps you find the right policy in a few clicks. You only need to submit your requirements to get multiple insurance quotes. Compare the quotes to find the policy as per your choice.
Read More: 10 Questions of Workmen Compensation Insurance Answered
Ensure employee safety and health with Workmen Compensation Insurance in place
As a small business owner, it is your prime responsibility to take care of your employee’s health by providing them with a conducive working atmosphere. So besides covering employees under a workmen’s compensation insurance policy, it is important to enforce safety rules and training. There are several ways through which you can maintain a safe working atmosphere. Some are as follows:
- Do regular checkups and safety inspections to identify and remove hazards
- Keep your floor clear of any material that could injure your workers
- Give necessary protective gear to your employees
- Schedule safety training programs for employees
- Give open and clear space for facilitating smooth lifting of equipment and materials
- Create posters with safety tips and display them at different prime office locations
It is feasible for a business to cut the risk of workplace injury by following the safety rules and procedures diligently.,
Implementing adequate safety measures at the workplace can help small businesses avoid accidents and injuries. However, one cannot avoid mishaps from taking place despite doing their best. Hence, it is always best to buy a suitable workmen compensation policy to safeguard against potential workplace injuries and accidents. Consult with an expert insurance advisor and buy a policy to cover medical expenses and legal costs if an employee gets injured at work. Insurers may also reward you with discounts.
