Your business is under the risk of facing accidents at workplace, which are unforeseen. Accidents happen at workplace because of different reasons such as carelessness of employees/employers, defective equipment, natural calamities, etc. Whatsoever the reason is, you need to pay compensation, by law, to the injured employees. As it is mandatory for you to recompense them, purchasing Workers’ Compensation Insurance (WCI) for the purpose is sensible. It offers coverage to your employees with the needed compensation for issues of injuries, illness or death at workplace or while working outside.
Compensation has to be paid by the employer regardless of whose fault resulted in accidents and consequent injuries/deaths. Thus purchasing WCI is a sensible business decision. Here are some benefits:
WCI covers medical expenses for injured worker/s, which you, as an employer should bear. These expenses may include doctors’ fee, hospitalization, test services such blood test, purchasing medication, CT scanning and the like, ambulance service, if offered and other services that are involved in the treatment of the injured.
Your injured workers might not be able to join duties until total recovery because of a disability. Hence, such workers lose wages for the period of absence during treatment. However as mandated by law, WCI compensates for as much as 66% of total wages for the period.
In case of death of the workers, death benefits will be offered to their dependents.
Injured workers may not be able to return to the occupation they were in because of disability or any permanent health restriction. In such cases, they need to be placed in alternative gainful employment.
In many cases, the worker might be advised by doctor to go for employment involving easy work. However, such employment might not offer the wage level it was before the accident. Hence the way out, is to undergo training for alternative job for gainful employment.
WCI covers the cost involved in cost of finding an alternative job, undergoing training and compensation until the person gets employment.
Workers’ Compensation Insurance is, thus, a protective coverage for your business. It covers liabilities involving job-related injuries, illnesses to employees, and protects your business. For employees, it covers the cost for getting well and coming back to the current job or getting a new one.
Purchase the policy through a reputed insurance broker
Having decided to purchase WCI, it is time to research. Determine the size of your business in terms of capital invested, number of employees, the measure of different sorts of risk likely to encounter. This will ensure to have an approximate size of the insurance cover your business needs. Research thoroughly. Purchase via insurance brokerage agencies specialising in business insurance.