Workmen Compensation Insurance, also known as workers compensation insurance or workers comp insurance.
In brief, it is a kind of insurance that gives monetary benefits to a company’s employees if they suffer injuries or illness during work.
The main purpose of Workers Compensation Workmen Compensation Insurance, pay for medical care, and cover missed wages if they need leaves for the recovery process.
When you are a business owner and have several people working for your company, their chances of getting hurt, sick, and injured during work are not rare. This is why having Workmen Compensation Insurance is extremely important. It can help your employees by providing monetary benefits they need during injuries or sickness and takes a lot of extra burden and stress off their shoulders.
Read on to know more about workers’ comp insurance and why you must have it for all your employees.
Workmen Compensation Insurance is like any other insurance policy that provides certain benefits to the policyholder on the occurrence of certain circumstances. It mainly covers several risks and health hazards involved during the job, and the cost of the insurance policy varies according to the level of risk involved.
Just like other insurance policies, workers’ comp insurance also requires timely premiums. However, the difference here is that instead of the policyholder, i.e., the company’s employees, employers pay the cost of premiums.
One of the main and obvious reasons you need to have Workmen Compensation Insurance is that it is mandatory by law in most countries. Apart from that, being a business owner, it is your responsibility and moral duty to look out for your employees’ safety in the job environment and compensate them in case of any unfortunate incidents.
The workers need to have an affordable and reliable solution in case of serious injuries or other tragic events, and a workman’s compensation insurance is the best solution for that. It provides several benefits to your workers and makes them realize that their safety matters and is taken care of.
It is advisable to buy a good insurance policy as soon as you hire a new worker, before any sickness or injury, so that you are not held financially liable.
Workmans comp insurance coverage has a lot of benefits to your employees. It can safeguard your business and your employees by helping them to cover the following expenses;
Benefits of Workmen Comp Insurance
We all know how expensive medical facilities can get. Paying the complete amount is in no way a cakewalk for everyone, and it is your responsibility to compensate them for all kinds of on-the-job injuries. If your employees get injured while working, the insurance helps them cover their medical bills.
2. Lost wages due to leaves
Workes deserve to be fairly compensated for the number of days they cannot work due to job-related injuries. So, when your ill or injured workers need time off from work for their recovery, the workers’ comp insurance covers the missed wages.
3. Death related expenses
In regrettable circumstances, if a worker dies due to a work-related injury, the insurance also covers funerals and other such expenses.
Workers’ comp insurance also benefits employees who need rehabilitation and therapy to help them get back to their normal lives. Also, not having workers’ comp insurance can prove to be harmful to you and your workers. In the countries where it is a legal requirement, the failure to provide a workman’s compensation insurance policy to your employees would subject you to several penalties, including a stop-work order.
If a worker gets injured when you do not provide workmen Compensation Insurance, you will face the consequences as their employer. You would be held responsible for the cost of all the medical expenses, lost wages, and all other privileges that the insurance would have otherwise covered.
Investing in a good workers’ comp insurance policy is not only a smart move, but it is also your responsibility as an employer. After all, if you won’t look after the well-being of your employees, who will? Moreover, workman’s comp insurance also protects your business from various financial losses.
We recommend you research your State’s legal requirements as different States have different laws, and if you are not complying with the local laws, your business could face civil or criminal sanctions. So do your research and then invest in a decent Workmen Compensation Insurance policy.
The information in this site is a general summary. Please refer to the actual policy for exact terms and conditions.