When it comes to hiring employees there is a lot of risks and the enormous responsibility that business owners need to take care of. They need to be prepared and understand that employees can be injured even during performing mundane tasks. For instance, an employee could hurt their back while just bending over to pick up a delivery package. Keep in mind, workplace injuries can be unpredictable, which makes small business owners responsible for their health, Hence,Workmen’s compensation insurance comes into the picture. Workmen’s compensation insurance is crucial as it transfers the financial risk of a workplace accident to the insurance company. This way, the small business owners can focus on running the business while helping the employees to heal, simultaneously.
Workmen’s compensation insurance simply protects employers from liability if their employees get injured while functioning at the workplace. It is legal and required in most states. It assists employers to maintain their employee’s health. No worker's compensation can lead to penalties and huge fines. The coverage for Workmen’s compensation is affected by several factors, like need of business, type of business, number of employees, risk exposure as well as the history of workplace accidents.Workmen’s compensation provides protection for employees’ lost wages, medical bills and other expenses if they get injured at the workplace. Be it small, medium or big, all business owners need to ensure their Workmen’s compensation is in place to protect their employees while functioning at the workplace.
At the time of any injury, accident or death while functioning at the workplace, the injured employee or his family need to perform the below steps in order to file a claim under Workmen’s compensation insurance;
The documents needed for Workmen’s compensation insurance claims are:
Under the workmen compensation act 1923, it became mandatory for employers to pay for their employees’ safety for any work-related injury or disability. It is most applicable at factories, construction sites, mines and plantations where the nature of work is very risky. Workmen's compensation insurance helps employees by protecting them from the financial burden of work-related disabilities or injuries.
Let's take a look at some frequent queries on Understanding the Importance of Workmen's Compensation for Small Business Owners;
The Workmen’s compensation insurance is paid by the employer only. Every business owner has to ensure Workmen’s compensation insurance for employees working in the company.
Generally, if all the details and submission to accident are accurate then under Workmen’s compensation insurance, the employer has to settle the claim within 30 days from the date of claim.
Yes, Workmen’s compensation insurance and employee compensation insurance both are terms used for the same type of insurance.