Five Types of Risks You Can Insure Your Employees Against

Five Types of Risks You Can Insure Your Employees Against

A worker of a textile company injured his hand severely and was unable to work for a considerable period. He was the sole breadwinner of his family. An unfortunate incident shattered his family who had to spend their minimal savings on his expensive treatment. The treatment costs were beyond their reach and they had to borrow from others and were heavily indebted.

Imagine such an incident takes place in your organization! First, you will be deemed liable for your employee’s safety. Secondly, it will be considered your duty to support your workforce financially. Supporting them in such a way not only enables you to retain them back but also helps in the maintenance of your company’s reputation in the industry.

Here are some of the common risks your employees might face along with their suitable solutions:

1. Natural Death

 The death of any employee can be very unfortunate not only for the family members but also for the employer as he would not be able to reap the benefits of the employee’s dedicated work.

 An employer is liable to support the family members of the employee at this crucial time. However, he might not be able to do so at the cost of his business.

 If he tries to avoid helping in such cases, it can also ruin the company’s reputation in the eyes of other employees and redeem the employer’s status to someone who is selfish

Group term insurance offers financial coverage to employees and acts as an ideal way for companies to reinforce their bond with their manpower. Covering all the employees under a single policy, this plan pays a sum assured to family members upon the death of the employee.

2. Accident, Partial or Total Disability:

 According to Government data, over 400 people were killed in road accidents in 2015. India’s roads are termed as unsafe based on such tragic statistics and the people who meet with accidents could be your valued employees!

 If an employee meets with an accident while in a personal vehicle, he can be rendered unable to work for a considerable period due to hospitalization.

 Even though the employer is not at fault, he is expected to financially help the employee in such cases and pay for the treatment costs.

 If an employee falls from the stairs and fractured his limb, it can render him without employment for a considerable period.

 Disability can also be as severe as rendering someone unemployed for a whole lifetime. Such accidents are more common in businesses like construction.

 Even though the employer might have taken safety precautions, no one can control such incidents beyond a limit.

 An employer can reimburse the employee and his family by providing them the salary for the period the employee remains unable to work.

 Vocational training in a different kind of job can also be offered to employees who would not be able to continue the same line of work.

 Disability of contractual employees can be covered under the Workmen Compensation Insurance Policy.

To combat with issues, like accidents and disability, a company should buy a personal accident insurance policy which will cover all the employees under a single policy. In case of death, accident or disability of an employee, the insurer will make a payment to the employee or his/her family, which can be used to meet different financial requirements.

3. Healthcare Expenses

 To reduce attrition rates, it is necessary that the employees maintain their health

 However, it is often seen that employees avoid regular health check-ups to save precious money.

 In case, they are aware that they will have the back-up from the employer, they will not avoid such check-ups which will enable detection of any critical illnesses at early stages.

 As healthcare costs are skyrocketing, any medical emergency can dent a hole in an employer’s pocket.

A company can buy a group health insurance to cover all its employees under a single cover. In case any employee is hospitalised, the insurer will bear hospitalisation expenses. Every insurer has a long list of network hospitals in which an employer can go and avail cashless treatment. In case the treatment takes place in a non-network hospital, the insurer will reimburse medical bills.

4. Professional Liability

 The scope of professional liability increases for organisations like hospitals, law firms, and the engineering companies, where professionals are deemed responsible for their decisions taken in a professional position.

 According to a recently published study, it is estimated that legal proceedings accusing doctors of negligence have seen a rise of 400% in the Supreme Court. Although only about 10- 15% of the cases have seen doctors being found guilty, the remaining 85% medicos nonetheless had to incur the cost of defending themselves.

It is better for such organisations to protect their and their employees’ reputation with the help of professional indemnity insurance. This insurance plan indemnifies the policyholder in case any legal suit is filed against him/her. It offers a wide cover against various types of risks and losses, including legal expenses.

5. Travel Risks

Those organisations that require their employees to frequently travel due to the official purpose need to protect them from the risk like

 loss of baggage,

 Loss of personal belongings

 Medical expenses required in case of accidents

 Medical evacuation

A company can buy a group travel insurance which will offer coverage to its employees against unforeseen travel perils, like loss of passport, baggage, etc.; that may arise during the journey.

Some mishaps are beyond one’s control. However, employers can help countering these risks by availing the group insurance schemes suitable for each type of risk. These policies not only insure employees against various perils, they also ensure peace of mind for employers as they know they can fall back on their insurance policy in case any issue arises. Overall, it is a win-win situation for both.

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