All You Needed to Know About a Workers Compensation Plan Before Opting for One

Workers’ Compensation Plan – Everything that you need to Know

A workmen compensation plan is a great tool for secure and safe working environment for your employees. When unfortunate events such as accident or injuries take place in the work atmosphere, the policy kicks in.All You Needed to Know About a Workers Compensation Plan Before Opting for One Providing your employees with additional benefits will almost certainly boost up their morale and confidence in the management. With so many great options to choose from, it can be a challenging task at times. One such tremendous value for money offering is a WC plan or a workmen compensation insurance plan. A WC plan helps you provide your employees with a work atmosphere where they feel secure and safe. Should anything wrong happen during the working hours, such as an accident, the WC plan will take care of it.

As an employer, it gives saves from hefty compensations and lawsuits which can be a bit difficult to get out of. Adding workmen compensation plan to your worker’s benefit list is without any doubt a great idea. But here are some salient features that you must be aware of before signing any deal with an insurer.

Why is it Important?

Well, the Workmen Compensation Act of 1923 mandates employers in the field of hazardous occupation such as mining, manufacture, construction etc. to provide their employers with a WC plan. Should any incident or accident occur during the working hours which might lead to death, partial or permanent disability of employees, the insurance comes into the picture. The plan would compensate the employee or their nominees depending on the nature and degree of the injury. The WC insurance plan usually has a lower and upper limit when it comes to such compensation, which is revised on a regular basis.

Major Coverage

The workmen compensation plan is primarily split into two types, namely Table A and Table B. The Table A clause is instead of the Workmen Compensation Act and the Fatal Accidents Act of 1855 and any other local laws. It provides an employer with protection when it comes to accidents arising at the workplace as covered by these acts.

Table B, on the other hand, provides employers with cover against any legal disputes and falls under the Fatal Accidents Act and other local laws.

Your Benefits

As an employer, you stand to benefit a lot by providing a WC plan for your employees. It is no hidden secret that employee compensation in case of death or injury is one of the major concerns or obligations of a company. By paying the insurance premiums on behalf of your employees, you receive legal liability coverage for any accidents that your employees are prone to during working hours.

Benefits

It goes without any saying that the benefits or features of a WC plan largely depends on the understanding and selection of policy between you and your insurer. But some of the most commonly covered situations under this plan are as follows:

  • Death of an employee
  • Permanent partial disability of an employee
  • Permanent total disability of an employee
  • Legal expenses that a company must incur (if there are any in the first place)
  • Or, Temporary disability of an employee

Exclusion

Just as is the case with any other insurance, there are exclusions to WC plans as well. Here are some of them.

  • Any injury or accidents to the employee while he/she was under the influence of alcohol or drugs
  • Any injury or accidents that are linked to invasion, trespassing, wars or similar activities
  • Responsibility towards the employees of a contractor
  • Employee disregarding any of the safety measures in place
  • Employee not gearing up for the available or necessary safety gear (if applicable)

These are some of the salient features of a WC plan. This should help you take the initial steps and understand the plan better. However, it is advisable to speak with your insurer to get clarity on the terms and conditions of the policy.