When you have a firm or an organization that requires manual support to carry out day to day activities, you are legally and morally obligated to take
When you have a firm or an organization that requires manual support to carry out day to day activities, you are legally and morally obligated to take reasonable care such that the employees or workers working for you are safe during the working hours. Nonetheless, accidents occur without giving any prior notice and as an employer you are bound to pay and compensate for the losses an employee bears for the said injury.
A worker compensation insurance serves a dual purpose. It helps the workers to get over the injuries without suffering heavy losses financially and the employers are protected from any kind of lawsuits an employee may file against the former.
What Is A Worker Compensation Insurance
As mentioned above, a worker compensation insurance policy indemnifies the injured workers from the expenditures that they bear owing to the injury. So more or less it is like a liability insurance which you should have if you have a set of people working for you. This protects both the employees and the employer to remain safe from unnecessary legal and medical expenditures.
Each individual state has its own worker compensation insurance. Sometimes the private organizations also keep such an insurance policy handy. In most of the situations, the employees working in an organization receive the coverage no matter whosoever the fault is. Since the employees are compensated for the monetary loss they suffer due to certain injury during work, the employers also preclude legal battles that might come across from the employees in the due course of time.
What Kind Of Expenses Do Worker Compensation Insurance Cover?
Injuries to workers within the work premises may occur due to the negligence or carelessness of either the employees at work or the employer who did not take enough precautions to ensure the safety. The actual coverage of this policy is broad. Generally, it gives coverage for the medical expenses that arise out of injuries, the income lost during the period of injury, retraining costs and compensation to the family members for the death of the employee. Usually, the indemnification done by the employer to the employees and their family is modest. Sometimes wage replacement guarantees a cover of almost two/thirds of the average income of the worker.
One other way by which the employers are benefited by keeping a worker compensation insurance with them is that an employee can never sue the employer after availing the benefits of the policy. Also, a worker compensation policy will not give any compensation for pain, agony or mental suffering to the employee and its family.
Typical Exclusions Under worker Compensation Policy
The policy is designed in such a way that both the employees and employers are at a fair side. The policy doesn’t give any coverage for the injuries that are self-inflicted or caused under the influence of alcohol. Injuries that are caused off the work premises or violates the company’s policy are also not covered. Coverage is not extended to employees who are terminated from the job or those who work on a contractual basis.
The employer should produce a detailed written information in the form of leaflets or pamphlets regarding the worker compensation insurance such that there is no ambiguity during any such unforeseen circumstances.