3 Things You Should Know When Taking Workers' Compensation Insurance

Workers' compensation insurance pays the medical expenses of employees who suffer injuries at the workplace. If you are a new business, you may not know much about this cover. Below is an extract discussing a few things you should know about workers' compensation insurance

Workers Compensation Insurance Is Compulsory

In Australia, the government expects you to have workers' compensation insurance if your business employs people permanently, on contract, part-time or seasonally. The cover is compulsory since it protects the employer and employee. Employers are protected from injury suits that could bankrupt their businesses while employees receive fair compensation for injuries suffered at the workplace. 

Always Choose The Right Cover

In a bid to cut costs, some employers will take a basic cover. However, the coverage you take should be customised to suit your business needs. Ask the insurer to assess your premises and operations before issuing the cover. In most cases, the insurer will evaluate the risk levels, the number of employees and their remuneration to determine the amount of coverage your organisation needs. If the premiums are too high, the insurance company will ask you to reduce the workplace risks. For example, you could renovate your premises to meet the required fire standards. If your employees work outside the premises, you should equip them with safety training and personal protective gear to reduce the probability and severity of accidents as they work.   

Inform Your Employees About The Exceptions On The Cover

As a rule, you should inform your employees how the cover works. Remember, they could be negligent since they know they will receive compensation for any injuries suffered while working. Workers' compensation only pays when the employer's negligence causes the accident. Therefore, an employee who suffers an injury due to improper use of machinery, poor judgement or intoxication cannot receive compensation. The incident should take place during working hours. Additionally, an employee cannot seek compensation if the injury occurred while they were in the process of committing a crime. 

This information compels your employees to observe workplace safety since they know that self-caused injuries do not qualify for compensation. Moreover, it will help keep your premiums down. Remember, if you make too many claims, the insurance company considers you an insurance risk. Therefore, they will charge more. 

You should also inform your employees about claims filing and how they can improve their chances of fair compensation. For instance, once the accident occurs, they should take note of any witnesses around and seek immediate medical attention. If possible, they should hire a lawyer to file the claim, handle insurance adjusters and prepare a water-tight case. 

About Me

Stressed about your business insurance?

If you're a small business owner, chances are high that at some point you've had to worry about your commercial insurance coverage. I've been running my own small business for thirty-five years now--believe me, I understand how stressful it can get! The good news, however, is that you don't need to worry about it as much as you probably do--especially not if you find the right policy and learn a little of the lingo. I'm hoping that this blog will help reassure you on some of the more stressful points, as well as give you plenty of hints and tips on how to find the right commercial insurance policy for you.



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