Labor insurance offers protection to employees if something happens on the job, such as an accident. It also provides coverage to the employee and their families in case of illness. Small businesses generally don’t offer any insurance to employees because of the expense. However, most carry workman’s compensation insurance to cover employees who may get injured on the job.
Because the hired staff are the main ones in charge of carrying out all the work activities of your company, it is essential to make investments in favor of their well-being and health. More than being seen as a monthly expense, it should be seen as an investment in human capital.
In the long run, each of these people is responsible for your company’s success. On the other hand, if you want to attract quality and competent staff, you must offer good coverage and services that guarantee each employee’s health and good condition. A good salary and good insurance are essential to keep all the workers in your company satisfied.
Ultimately, some labor insurance is mandatory and demanded by the government. This mandate is intended to ensure the health of employees. In the event of an accident or unexpected illness, instead of the money coming directly from the company’s profits, generating an imbalance in the inflows of money, insurance helps pay those premiums and take care of all the paperwork.
Types of Labor Insurance
As mentioned earlier, insurance can act differently depending on the occasion and what happened. Therefore, we are ready to explain and answer each question about the types of labor insurance. The types of labor insurance are:
- Health insurance
- Life insurance
- Disability insurance
- Insurance against accidents
What is health insurance?
It is a contract made with an insurer to cover your company’s employees’ medical and daily expenses. Depending on the cost and the terms included in this contract, it could consist of higher or lower benefits, a higher fee for money, or different medical services.
How health insurance works
The employee, if needed, will approach any medical center where they work with the insurance contracted, and the cost of the consultation or treatment will be deducted from the total amount covered by the policy. According to the terms and clauses in the insurance contract, it will say what amount of money is available for medical expenses and how often the employee can regain that amount.
What is disability insurance?
Disability insurance is responsible for paying, as a monthly salary, money to all people who cannot work or perform an occupation due to an injury. Generally, 40 to 60% of the base wage received before the accident is remunerated. These disabilities are the result of an accident at work.
What is life insurance?
Probably, this is one of the most important insurances that, as a patron, you must consider owning. Although it can be offered to employees, it is essential to ensure both key employees, better known as partners, and yourself. Life insurance consists of paying an amount of money to the insurer, and in case of the insured’s death, the money is given to the person or the company.
This type of insurance is helpful because it ensures its maintenance, even after your death if you have a family. If it is for an employee, the policy will reimburse all the money necessary to replace his presence and the income produced.
What is accident insurance?
Finally, there is insurance against work accidents. Employers must cover all expenses for work risks or illnesses contracted because of work done for the company.
Regardless of the number of hours worked by employees or the seniority you have in the company, this insurance is required for all workers. In the event of an accident that causes an injury or injury to the employee or due to an illness caused by different work environments and exposures to substances harmful to health, and through a prior medical evaluation, the amount of money owed shall be determined. Cover and remunerate the worker.
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