The term "workers compensation insurance" is often associated with physical injuries and occupational diseases. However, it has a much broader scope when it comes to protecting employers and employees.
Workers compensation insurance covers medical expenses, lost income and rehabilitation costs if an employee suffers an injury that prevents them from doing their job.
Here are four reasons why your business needs workers compensation insurance.
1. It Protects You From Legal Liability
If an employee is injured on the job and sues you for damages, workers comp can cover the cost of any judgments or settlements awarded against you by a court or through arbitration. It also covers legal defence costs in cases where an employee sues for wrongful termination, discrimination, harassment or other workplace safety issues. For example, if an employee falls off a ladder while installing new lights at your store and breaks his leg, workers comp will pay for his medical bills and lost wages while he or she recovers from their injury — not you.
2. It Protects You From Fines In Australia
In Australia, employers who don't have workers comp insurance are subject to fines and penalties of large sums. This includes fines for not providing workers with adequate protection or compensation in the event of an accident. If you don't have workers compensation, you also run the risk of being sued by injured employees and losing your business. The importance of having workers compensation for your business or franchise cannot be overstated.
3. It Protects Your Employees' Health
If an employee has an accident or injury at work, it could affect their health for years to come. Workers compensation insurance will help compensate them for any medical bills incurred due to the accident or injury, regardless of whether they are permanent or temporary injuries. This ensures that employees' health isn't compromised by their workplace environment.
4. It Reduces Stress Among Employees
Another reason why having workers compensation insurance is beneficial for your company is that it reduces stress among employees at all levels of management within the company structure. If an employee gets injured on the job and needs time off work, their supervisor can rest assured that everything will be taken care of by workers compensation insurance coverage and not have to worry about whether or not the employee will get paid during this period of absence from work due to injury or illness.
To find out more about the benefits of workers comp insurance for your business, contact an insurance agent today.Share
14 November 2022
When I started my own business. I knew it was important to get insurance. After all, I have a variety of insurance policies covering my home and family, and my business needs protection too. I was, however, surprised when I started looking at commercial insurance products. The decisions I had to make and the features I had to choose took me out of my comfort zone, and I had to think hard about what my business actually needed from a policy. I got some useful advice from friends who run their own businesses, and I’d like to share some of this advice here on my blog for new business owners looking to insure their companies for the first time. Hope you find the information you need to know to make your business safe.