Article by Lucy Walsh
Within a hazardous business, many safety nuances must be accounted for in order to keep things running smoothly. Insurances of different types cover many of these, and at times, the necessary procedures can become hard to keep track of, especially for the employer!
Both the employee and employer should be aware of what types and levels of coverage that the company offers, and what additions employees should think about supplementing that coverage with.
Your employer will likely provide several kinds of insurance to cover injury on the job, but they will not provide everything. Life insurance, for example, is a standout that sometimes isn’t offered by employers, is optional, or is only provided for a fixed term. Regardless of whether or not your employer offers life insurance, whether you accept or look through a different provider is up to you.
Life insurance offers peace of mind that your family will be taken care of in the event of your passing. If you do enough research, you can find agencies out there that will insure you even if you work in a high-risk job. Alternatively, some worker’s compensation plans will contain “death benefits” that are similar to life insurance, but may only pay out a limited amount, and are only viable if the employee dies while on the job. If you can afford it, purchasing life insurance, if available, in addition to your existing compensation insurance is the most secure option.
As an employer, most of the protective insurances for your employee will be furnished by you and your business, aside from optional packages that your employee may seek out on their own. In most areas, you will be required to furnish worker’s compensation for your employees, in addition to other insurances like disability and liability insurances. However, some areas of the world will allow you to opt out of providing some or all of worker’s compensation for your employees. If you do this, though, you take on the financial obligations for that employee that the insurance would otherwise cover.
An alternative to worker’s compensation is called occupational accident insurance. With this insurance, you’re much more in control of what scenarios and what amounts of coverage you provide for your employees. However, it’s also your responsibility if you provide too much or too little coverage to your employees this way.
Additionally, you will need to furnish the other types of insurances that we mentioned above. Liability insurance will cover you against any damages or errors that your business or employees make against a customer. This is especially important for high-risk working conditions where mistakes can end with catastrophic results. You will need to furnish disability insurance for your employees, too. Similar to worker’s compensation, disability insurance will provide a source of income to employees while they are injured or otherwise unable to work. Of course, in any dangerous job where physical injury is a risk, disability insurance is a must.