Maintaining workplace safety is of utmost importance for all employers to manage. No matter what kind of business you run, it is your responsibility to reduce the risk of injuries or sickness at work. Although it is possible to minimize this risk, it is difficult to eliminate it completely. Workplace hazards do often lead to health problems for the hired workforce.
Let’s say you run a construction firm and have hired hundreds of workers to work at different sites as a part of your business. In case a worker faces severe injury due to their falling from a height, you have to provide them with the required medical treatment as well as compensation. In extreme situations, the cost of necessary treatment can be very high.
One way to safeguard your business against the aftermath of such hazards is to buy a workers compensation (or employees compensation) insurance. This is the primary method with which you can meet the obligations imposed by the worker compensation laws and the Workmen Compensation Act. With an employees compensation insurance policy in your possession, you need not pay the compensation out from your pocket. Instead, the chosen insurance company will pay for it.
Why Do You Need Employees Compensation Insurance?
- To pay the compensation for which you are legally liable in case of an injury or diseases that happen during employment
- To get coverage for the legal expenses arising out of lawsuits filed against you or your firm in the labour court
- To cover occupational diseases that may occur due to industry-specific hazards
What Does a Workers Comp Insurance Cover?
1 . Defence Costs
The cost of defending yourself in the court of law can become huge, depending on the severity of workplace accidents. You may need renowned lawyers who charge hefty fees to help you out to deal with the lawsuits . One of the main benefits of buying a workers comp insurance is that it pays off the legal expenses. You will get this insurance benefit based on the specific terms of the policy you choose.
In other words, buying a workers comp insurance means you need not worry about the legal cost involved in case an employee sues your firm for the losses incurred in a workplace accident.
2. Work-related Diseases
You might have heard of workers suffering from certain occupational diseases that arise because of an unhealthy work environment.
Take the case of a warehouse that has toxic gases inside as a result of chemicals used in the production unit. If workers do not have the required safety gear when at work, the contaminated environment is likely to cause lung diseases to them. Ultimately, the employer is liable to pay for the treatment as per law, no matter how much it costs.
Workers comp insurance covers your liability against such diseases. The insurance company will pay for the treatment cost without causing a financial loss at your end.
3. Income Lost Due to Disability
Workplace accidents often lead to severe injuries to the employees because of which they are unable to work for a long time. In some cases, such mishaps result in permanent disability due to which they cannot work in the same field throughout their lives.
All employers are held liable to compensate for the income lost due to temporary or permanent disabilities arising from workplace accidents. Providing for lost income can cause hefty financial loss. However, you can prevent it by buying a workers comp insurance policy. Depending on its terms, the policy offers coverage for disability caused due to severe accidents at work.
Considering the risk factor in mind, buying employees compensation insurance is a way to minimize significant loss. Purchasing the policy can become a challenging task since you need to consider several crucial factors. One way to simplify the process of buying workers comp insurance is to connect with an insurance broking firm like SecureNow that offers insurance policies from various companies in one place.