Being a business owner means you have probably considered the advantages of workers' compensation cover for your employees. If you haven't, then there is no better time than now.
What is workers' compensation?
Workers' compensation is an insurance policy that protects employees if an incident prevents them from working. Whether this means an accident happens on the job or a sudden illness arises, workers' compensation will ease any potential financial burden.
For example, if medical costs are required due to the injury or illness, and the employee isn't able to work during this time, the cover will play a role in assisting with these costs.
From funeral expenses to lost wages, workers' compensation cover will help more than just the employee, but their family as well. After all, the burden of cost shouldn't just fall on other family members.
And while most businesses have safety protocols in the workplace, accidents do happen. But workers' compensation protects the business owner as well as the employee.
If a worker has an accident related to their job (even if they are on their way to or from the office), workers' compensation will ensure that they continue to receive payment. Additionally, this policy makes it so the business owner isn't responsible for these affiliated costs.
In terms of managing the legal risks and well-being of a workforce, workers' compensation is a critical part of your operational framework.
It's required by law
Having workers' compensation is more than a responsible benefit to have in place for your business and your employees; it's also a legal requirement for any business that has employees in Papua New Guinea.
This requirement is in place to make sure everyone is protected should an unfortunate accident occur. Additionally, business owners can be fined if they do not have proper workers' compensation cover. According to the Workers' Compensation Act of 1978, fines up to K500 can be issued for a first offence, and up to K1,000 for additional instances.
But the fact that it's a legal requirement shouldn't be the only reason you look into your workers' cover options. Simply put, employees are the backbone of any company, and they should have peace of mind about their financial stability and their workplace safety. They should feel valued.
This can go a long way in boosting morale and keeping company culture in high spirits. This support will hopefully ensure a high-standard quality of work from happy employees, as happy, secure employees are more predictable and reliable.
The right option for your company
While the law requires your company to have a workers' compensation policy in place, there are different options to choose from. This is because every business doesn't have the same needs for its employees.
To make sure you choose the right policy for your firm, or if you simply want to understand your options a bit more clearly, there are insurance brokers on hand to help navigate these options.
For more information, reach out to Trans Pacific Assurance today.