All businesses in Papua New Guinea that have employees are required to have workers' compensation insurance. This type of insurance policy is designed to protect workers and their dependents from financial stress in the event of a work-related injury or death.
Here, we cover the basics of how this type of insurance works, why you need it and how to sign up for the right types of commercial insurance for your company.
How workers' compensation insurance works
Worker's compensation provides financial assistance in the event that an employee gets injured or killed while at work, or in the course of business-related transport. The compensation from this type of insurance goes to the injured employee and/or that person's dependents.
This money compensates for lost wages as a result of the injury and covers medical expenses related to the incident. If necessary, workers' compensation can also be used to cover funeral expenses.
The workers' compensation process begins with reporting. When an incident occurs, the first thing an employer should do is assess the situation and call any medical professionals if necessary. Once the situation is under control, the injury must be reported to a Registrar or Deputy Registrar of Workers' Compensation as soon as possible.
Why businesses need workers' compensation
First and foremost, you need workers compensation because it's the law.
However, this is just one reason employers should have this type of insurance.
Ensure injured workers get the care they need
If an employee gets hurt, it's important that he or she gets the medical care they need to heal properly and avoid long-term health issues related to the injury. Your workers' compensation policy ensures they are well taken care of after the injury, and throughout their recovery.
Nearly 20% of people who return to work following an injury reported they need to take additional time off, according to Safe Work Australia's 2018 National Return to Work Survey. It's important to take the necessary amount of time for recover to ensure a smooth and successful return to work.
Protect employees and their families from financial hardship
An injury that prevents someone to return to work promptly can mean the loss of the primary or only income stream for a family. Workers' compensation insurance protects employees and their families from the financial hardship that can result from this situation.
While a family may have savings built up to cover emergencies, depleting these resources can set them back from realising certain goals. Having this reliable means of income during an unexpected challenging time can help them remain financially stable.
Establish a trusting relationship with workers
Workers may feel more comfortable performing their job duties if they know they'll be taken care of in the event of an injury. Providing workers' compensation insurance and informing individual contributors of their rights helps establish trust between employer and employee.
How to get the commercial insurance you need
Workers' compensation is just one type of commercial insurance Papua New Guinea businesses should invest in. Policies such as public liability, vehicle, earthquake, cyber and equipment insurance can all work to keep your business financially healthy.
To learn about workers' compensation insurance and other types of policies you may need, speak with an insurance agent at Trans Pacific Assurance Limited. Your agent will review the risks that may impact your business, and make helpful suggestions as to the types of insurance policies that will best suit your needs. Contact us to learn more and get a free quote.