Worker compensation insurance: discover all about workplace insurance, how it differs from accident sickness insurance, how it pays your compensation following an accident at work and therefore the benefits to the safety in your workplace of involving your employer’s insurer in your claim.
What is worker compensation insurance?
An injury at work is one of the most common types of accidents in the UK. Although the bulk of injuries are minor – leading to a fast recovery period and a little compensation claim – some injuries are very serious causing permanent disability and a large amount of lost income.
If your employer had to satisfy the expense of an outsized claim out of his own pocket – his business would quickly go bankrupt or he simply wouldn't be able to pay.
To ensure your right as an employee to receive the compensation you're entitled to – your employer is required by UK law to possess in situ a policy which will pay your compensation claim if you're injured within the workplace – this policy is understood as “worker compensation insurance”.
What is accident sickness insurance?
Accident sickness insurance is additionally referred to as accident sickness unemployment insurance. It is a personal policy you'll remove as an employee who can make sure payments on your behalf if you're absent from work otherwise you are made unemployed as a result of accident or sickness.
This is not equivalent to worker compensation insurance which is taken out by your employer and truly pays for your compensation claim.
If you've got an accident sickness policy let your solicitor know because it could affect the quantity of lost income you'll claim as a part of your compensation.
Who do you claim against – your employer or his insurance company?
You must always claim against your employer. Once you've got made a claim against him he will pass the claim onto his insurance firm to affect on his behalf.
The insurance firm will investigate your accident and pay your compensation as long as it's satisfied that your employer was liable for your injuries. In other words – the worker compensation insurance firm will “indemnify” your employer for any proven compensation claims.
Worker compensation insurers won't take your claim seriously unless a specialist solicitor is involved and, even then, it's often necessary for your solicitor to start out your claim in court for you to urge the right amount of compensation.
Do you still have a claim if your employer has gone bankrupt before your compensation claim is finished?
“Yes” – as long as your employer was insured at the time of your accident – his policy will still meet his liability albeit he's bankrupt or no longer in business.
What are the advantages of safety in your workplace by making a compensation claim?
You will be pleased to understand that the benefits are quite significant.
As insurance companies don't wish to disburse large sums of cash too often – the pressure is going to be exerted on your employer to get rid of the risks that caused your accident. A simple warning that your employer won't be insured for any similar accidents is generally sufficient for him to vary his ways.
Also, your employer will need to report the accident to the Health and Safety Executive who will make sure that any dangers are removed.
The advantage of you making an accident at work claim is, therefore, simple – your employer will remove the danger from the workplace that caused your accident then remove the risk to the other employee from being injured as you were.
You are doing both your employer and your workmates a service by making a claim – your employer is going to be forced to get rid of the danger that caused your accident and so eliminate the danger of a workmate being injured within the same way. Remember your injury could be small, but a workmate’s injury might be much worse.
Worker Compensation Insurance Summary
You now know all about worker compensation insurance, how it's different from accident sickness insurance, how it is often wont to pay your compensation claim and force your employer to remedy any danger in the workplace.
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