Businesses have a legal obligation to protect their workers from hazards that may occur at work. In addition to taking steps to ensure the safety of all workers, they're also required to have a workers' compensation scheme to compensate workers that may get injured in the line of duty.
Workers' compensation insurance is a form of business insurance that businesses take to provide financial compensation to their injured employees. When an employee suffers an injury at work, they can file a compensation claim with their employer's insurer rather than file a lawsuit.
Purchasing workers' compensation insurance delivers benefits to both employers and employees. Read on to discover the benefits that accrue to each group of beneficiaries.
Benefits for Employers
By taking workers' compensation insurance for their employees, businesses or employers can reap the following benefits:
Attracting Top Talent: The best workers in the labour market want the best salaries and perks as compensation for the time they spend at work. Workers' compensation is one of the basic employee benefits they look for when deciding to take up a new job.
Improved Conflict Management: Workplace accidents are an inevitable part of business. When these accidents occur and cause injuries to workers, it's important to have a smooth and efficient process of compensating the injured workers. Taking workers' compensation insurance provides an avenue for employees to seek damages when they get injured on the job. This potentially eliminates and reduces the need for court action which may easily turn scandalous.
High Employee Retention Rate: When businesses purchase workers compensation insurance in addition to adopting measures to make the workplace safe, they make employees feel valued and appreciated. This, in turn, reduces the risk of losing top employees to other businesses.
Benefits for Employees
Employees can benefit from workers' compensation insurance in the following ways:
Financial Compensation: Injured workers receive financial compensation for lost wages/income, medical expenses, and rehabilitation costs.
Increased Job Satisfaction: Employees have peace of mind and enjoy greater job satisfaction when they know that they'll get paid and their medical and rehabilitation costs will be covered if they get injured at work.
Workers' compensation in Australia may vary slightly by state and territory, so businesses should take insurance from insurance companies that serve the specific areas they do business. Employees are every business's most valuable asset, so businesses should make deliberate efforts to protect them when things go wrong in the workplace.