As a business owner, you value the contribution your employees make to your company.
These are the people who keep operations moving efficiently and work to ensure customers are happy. There are many ways you can compensate employees for their efforts and show appreciation for their hard work.
One thing every business should have is a plan in place for supporting workers in the event that they become injured or ill as a result of their job duties. The very first aspect of this plan should be workers' compensation insurance.
Workers' compensation: An explanation
Workers' compensation is an insurance policy that assists workers and their families if they become ill or injured due to their job duties. It can help cover a number of expenses, including:
- Medical costs
- Lost wages
- Funeral expenses
This type of insurance policy goes into effect when an employee sustains an injury, becomes ill or is killed because of their job function, even if the accident occurs while the person is travelling to or from work, or is carrying out a business activity outside of the workplace.
All businesses with employees need workers' compensation
Workers' compensation insurance is required for all businesses that have employees in Papua New Guinea.
Companies that are found to have workers employed for them without the proper workers' compensation policy in place may be subject to a fine of up to K500 for a first offence or K1,000 for every penalty thereafter, according to the Workers' Compensation Act, 1978.
Beyond the legal requirement to buy workers' compensation insurance, this type of policy is simply good to have in order to protect employees and their families in case an accident occurs.
Your employees rely on their paycheck for financial stability in their lives. If their income should suddenly stop because of an injury due to work, they may have to rely on savings to cover everyday expenses like food, housing and utilities. Further, if they're injured or ill, they'll likely need medical treatment – further depleting their personal savings.
By having a workers' compensation policy in place, you're stepping up to support workers after a detrimental event that impacts their ability to work and make an income. It's not only a legal obligation, but also simply the right thing to do.
How to get the right policy
Different companies may require different levels of coverage, depending on the number of employees that are on their payroll and the nature of their work. The best way to ensure you have the right policy is to work with an insurance professional with experience in putting together workers' compensation policies.
An insurance broker is often the best resource for businesses that need to purchase insurance policies for the first time, or that need to review their current policies to ensure they still reflect the risks their businesses face. Brokers have relationships with multiple insurance companies, which gives them the ability to compare various insurance products and craft an insurance policy that meets the specific needs of individual businesses.
At Trans Pacific Assurance Limited, our professionals are experts at creating personalised insurance policies for their business clients. They review the details of your business to understand your specific needs, and work with you to create a cost-effective policy that has the right amount of coverage.
Contact us to learn more about workers' compensation insurance options for your business.