In a labour-intensive country like ours, there is always the probability of a high number of workplace accidents. According to a report, nearly 48,000 workers die in our country due to occupational accidents. Fire-related accidents, falling from heights, or slips/trips are some of the most common workplace accidents you might have heard of. If you run a business, you need worker’s compensation insurance. Every occupation brings with it its own set of risks, and one cannot predict any mishaps. However, your company can take measures to determine risk factors and minimize them.
For instance, if an accident in the workplace renders an employee unable to work and causes a permanent disability, the Workmen’s Compensation Act provides compensation as per the related guidelines and rules.
You are solely responsible for your employees’ safety and security and to prevent accidents in the workplace. You do bear the responsibility of any accident occurring in the workplace. In times of crisis, you must pay the expenses or legal liabilities that arise. A workers compensation insurance policy can be a source of great relief for you to cover medical costs and legal obligations arising in such situations. Here is how this works:
It Covers Your Legal Liability
Legal expenses related to lawsuits arising out of workplace accidents can be very high, and you may find it difficult to pay them. Further the injuries and mishaps at a construction site or manufacturing facility can cause severe injury to the workers, for which the legal cost can be high. So it is crucial to have workmen compensation insurance as it pays off the defense costs involved as per policy terms.
Having this type of insurance minimizes the risk that an injured employee will sue for the damages or losses incurred. Even if he does, the chosen insurer will take care of the related expenses.
It Takes Care Of Vocational Rehabilitation Expenses
Its easiest to understand this with an example – A factory worker meets with an accident on the worksite and is unable to walk again. Will he be able to continue working on the same site again? Probably not.
In such situations, he will need to learn some other skills to earn his livelihood. For your employees’ benefit, it is best to buy workmen compensation insurance. This insurance will also cover vocational training expenses for the injured in some other field to help him support his livelihood. This can be highly advantageous for you as it motivates your workforce to perform well.
It Covers Occupational Diseases
A disease caused during work or due to working conditions is known as occupational diseases, which can include asthma, bronchitis, or lead poisoning, depending on the work environment.
If one of your employees contracts such a disease, you cannot put off the responsibility or liability to treat him for the same. Don’t worry as worker’s compensation insurance will pay for the related medical expenses without burning a hole in your pocket. Taking good care of your employees will also improve your reputation in their minds.
It Provides Income Lost Due to Disability
The severity of injuries in workplace accidents varies from one situation to the other. In some cases, an accident can be so severe that it renders the injured unable to work at all. They are rendered jobless partially or for their whole lives due to such disabilities.
As an employer, it becomes your liability to compensate for the income lost because of the severe injury. Paying for this can cause substantial financial loss. However, you can avoid this loss by choosing workmen liability insurance. It covers partial or total disability suffered by any employee.
Lack of workmen insurance may cause disputes amongst you and your employees, which can take the shape of a lawsuit against you.
Comprehensive Inclusion of All Employees
The risk of a workplace accident is not restricted to the labor class individuals working for you, but also extends to all your employees. Industries that involve high labor-intensive work such as construction sites, mining, transportation, and logistics are at higher risk of workplace mishaps than those involving desk jobs.
Irrespective of the risk factor, it is crucial for you to invest in workmen compensation insurance to minimize potential financial losses. Reputable insurance brokers such as SecureNow provide insurance policies from various insurers for you to choose from. These policies include costs of medical expenses, occupational diseases, disabilities due to work, defense costs arising out of lawsuits, and even accidental death at the workplace.
To sum up, a worker’s compensation insurance policy should be an indispensable part of all businesses, irrespective of the industry or size. It has a dual benefit of covering both the employer and the employee financially. Also, you can claim the tax-deductions for the premium paid towards the policy.
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