A workmen compensation insurance policy is meant to offer legal liability cover to employers and protect employees by providing them compensation in case of any injury or accident. However, small business owners consider it like any other extra and unnecessary expense and thus, scout for various ways to avoid buying it. Some small business owners believe that accidents and injuries only occur in high-risk industries like manufacturing, construction, etc. Although, sectors like construction, mining are more accident-prone, the risk is prevalent in other industries like insurance, finance, transport, etc.; also.
So, knowing the ins and outs of a workmen compensation insurance policy is necessary for the complete safety and success of any business, irrespective of its size. Before you get tangled in the complexities of law suits, here are some important things you should know about workmen’s compensation insurance policy=
- Even if you’re not required to have a workmen insurance policy, you will still need it= If you wrongly assume workmen compensation insurance policy as a business expense which you can easily cut, it is the time to change your mindset. Without this insurance policy, you will put your business at significant risk. Companies without workers’ compensation insurance policy can face high fines along with potential lawsuits, if one of its workers gets injured on the job. Medical expenses and lost wages will be compensated to the injured party along with death benefits, if god forbid, the injury is fatal.
Read More: Myths Related to Workmen Compensation Insurance Policy
Not only you will have to pay all the expenses from your pocket, but your business will have to incur financial losses if due to the injury, the employee stays out of business. It will result in the loss of productivity and possibly, you may also lose business contracts as well. Because of this reason alone, many small business owners prefer to buy a workmen compensation insurance policy. Some of the events which are covered under the insurance policy are=
- Permanent total disablement
- Permanent partial disablement
- Temporary disablement
- Legal costs incurred if any
- It can help in retaining employees= Any time you offer a benefit to employees, it can keep him/her onboard. Those businesses where employees work with heavy machinery and equipments or in a hazardous occupation, a workmen’s compensation insurance policy is required not only for the risk management of the business but also for the employees’ peace of mind. Those employees who work with heavy machinery and equipments, the fear of getting hurt and subsequently burdening under medical expenses is a real scenario. If you have a workmen’s compensation insurance policy, it ensures that employees who got injured will be covered and they will not require to bear medical expenses on their own.
- It is not as costly as you think= If you think a workers’ compensation insurance policy costs prohibitive for your business, think again. There are various insurance companies which are offering the coverage at lower premium rates. So, either you can buy the policy directly from the insurance company or take help of corporate insurance advisors like SecureNow which can help you find the right policy in a few mouse clicks. You only need to submit your requirements to get multiple insurance quotes which you can compare to find the policy as per your choice.
Read More: 10 Questions of Workmen Compensation Insurance Answered
As a small business owner, it is your prime responsibility to take care of your employees’ health by providing them a conducive working atmosphere. So besides covering employees under a workmen 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=
- 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 programmes for employees
- Give open and clear space for equipments and materials which are required to be lifted and handled
- Create posters with safety tips and display them at different prime office locations
If safety rules and procedures are followed diligently, it is feasible for a business to cut the risk of workplace injury and insurers may also reward you with discounts.
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