As a business owner, you have a legal responsibility to make the workplace safe for your employees. However, accidents can happen in spite of taking every reasonable safety measure. Therefore, to provide medical care to employees injured in workplace accidents and to financially safeguard themselves against the possibly resulting lawsuits, business owners must buy workers compensation insurance.
Workers compensation insurance covers the medical and compensation costs of employees or workers if they are injured on the job. Having this insurance means that your employees can recover from job-related injuries without the complexity of a lawsuit.
So, whether the employee is injured on the workplace premises or while running any business errands, workers compensation insurance offers coverage. Furthermore, it also covers work-related illnesses.
Although this insurance offers coverage against multiple instances of work-related injuries, there are specific occasions in which it does not pay any claim. So, let’s understand the cases where the workers compensation claim is not admissible.
Injuries Incurred During War And Associated Perils
It is not considered as a fault of the employer if any accidents, attacks or invasion of the office premises occur in case of war. Such activities are not under the employer’s control, and workers cannot hold him responsible as he is also a sufferer.
Therefore, any injury, disability or death in such cases is not covered under workers compensation claims, and likewise, no medical expenses are borne by the insurer.
Terrorist Attacks in Business Premises
Terrorist activities are also not under the employer’s control. Therefore if the employees suffer injuries at the workplace due to the terrorist activity in the office area, it will not be covered under the workers compensation claims.
Third-party employees are not the full-time employees of the firm. Therefore, if your business has hired third-party contractors, consultants, or labourers, then any injury, disability or death caused to such third-party employees will not be covered.
Self-Harm or Suicide
A workers compensation policy covers only accidental injuries and not intentional ones. Therefore suicide attempt or self-attempted injuries by the employees in the workplace are excluded from workers compensation claims.
Injuries While Under The Influence Of Liquor Or Drugs
Being under the influence of alcohol or drugs at the time of the injury may result in an inadmissible claim under the policy. This is on the grounds that intoxication can lead a person to lose control over the body, which can result in accidents.
Moreover, even if the employee is on duty and it is found that he had consumed alcohol and met with an accident, his case will not be considered under the workers compensation policy.
Injury Suffered Outside Of Employment
If the injury, disability or death is caused outside the office premises when the employee is not on duty, it will not be covered. For instance, if the employee meets with an accident while he is on vacation or if he is travelling for personal work, it will not be covered under the policy.
Tampering or Non-adherence of Safety Measures
If the employee does not follow the safety protocols or if the security devices are intentionally removed and then the worker suffers an injury, it will not be covered.
All in all, workers compensation insurance can be labelled as ‘Essential Business Insurance’ as it safeguards employers against the financial hardships caused due to workplace hazards. However, before buying the policy, it is crucial to understand the exclusions. Furthermore, for complete clarity, one must read the fine print.
Buying this insurance online directly from an insurance broker can be faster and simpler. For instance, you can get multiple quotes from a reputable insurance advisor like SecureNow and also get assistance during the buying process, managing the policy and filing claims.