Worker’s compensation insurance plays a pivotal role in small business. It provides required coverage to help workers in the case of workplace injury. Most importantly, this insurance will protect your business from employee liability. It means you don’t have to pay for a workplace injury.
Worker’s compensation insurance is as essential as any other business insurance. It offers financial support such as reimbursement of medical bills and replacement of missing wages to the employees who have sustained a workplace injury or illness. If there is no worker’s comp insurance, then the entire liability would fall over the businessman’s shoulder.
What is Worker’s Compensation Insurance?
Worker’s compensation insurance is a type of insurance that provides medical benefits and wage replacement to employees injured in the time of employment. To get this financial support, an employee has to relinquish the right to sue his/her employer mandatorily.
Worker’s compensation is introduced mainly to avoid lawsuits. It benefits both the employee and the employer. Worker’s compensation insurance Canada is a provincial responsibility So the rule varies from province to province.
For example, worker’s compensation insurance Ontario is running by the Workplace Safety & Insurance Board (WSIB). WSIB doesn’t only provide financial support to employees but also adopt a preventative role to ensure workplace safety.
Why Worker’s Compensation insurance is essential for small business?
Both the employee and employers get huge benefits from worker’s compensation insurance. Here are some significant reasons to adopt worker’s compensation insurance-
- Worker’s compensation protects your business.
- Worker’s compensation helps your employees.
- It is required by every province.
- It helps to evade lawsuits.
- It helps employees to recover.
Worker’s compensation protects your business.
Many small business owners think that they may not need worker’s compensation insurance. Since they have a small number of employees and a small set of profits, they find insurance costly. But the alternative is much worse. What if an employee gets injured during work time? He then has every right to sue the company. The company is liable to bear medical expenses and other financial supports.
The insurance offers financial support to employees. It bears the cost of medical bills, missing wages, and also provides other support. Besides, insurance helps your business to avoid potential lawsuits. The employee has to forfeit his right to sue the company for negligence in the time of workplace injury.
Worker’s compensation helps your employees.
When any of the employees gets injured in the workplace, it brings a great deal of worry for employees and employers. The employee receives through physical pain and mental pressure. He has to think about many things at a time- how much this injury will cost him, how much time does he need to recover, who should he seek help for compensation, etc.
The employee also gets alarmed by his employee’s accident. He has to think about the condition of the employee and how much it will cost the company. The employee can sue him too.
With worker’s compensation insurance at hand, both parties can get some relief. Everything will be under a smooth procedure.
It is required by every province.
Each province in Canada has different policies regarding compensation insurance. Though the plan varies, it still is mandatory in every province except for a few industries. It is crucial that you understand your province’s worker’s compensation law and then adopt the most beneficial policies. This way, you can avoid the complicacy of laws.
It helps to evade the lawsuit
Without insurance, the employee always gets the upper hand if they sue their employer for a workplace injury. The company may face substantial financial damage. It also can damage the reputation of your company. You may find it difficult to recruit more employees.
Worker’s compensation insurance ensures that the workers can’t sue the employer. Employees will also be happy with the terms and conditions of coverage. So it’s a win-win for both parties.
It helps employees to recover
This insurance doesn’t only provide financial assistance to injured workers. It also helps the workers with any rehabilitation and training program. The ` insurance also takes care ` about the wages they miss in the time of recovery.
Even if the employee doesn’t find himself fit for the job due to his injury, the insurance will help him to find a new suitable position.
Worker’s compensation insurance Canada is a delicate issue. It works for everybody’s interest. Employees get their financial aid, employers get to avoid lawsuits and liabilities, and human rights don’t get violated. Small business needs this insurance badly. This way, they can ensure that their hard-earned money doesn’t get drained away in some lawsuits.
This insurance law makes everyone protected from the law. Nothing is more hazardous than fighting a lawsuit. The insurance needs to be done just not because of its mandatory. It’s for your own business. Any more questions about worker’s compensation insurance Canada? Don’t hesitate to reach out to us.