If you are in the process of starting a business, you will probably want to find out the best way in which you can protect the health and physical wellbeing of your employees. Investing in your workers is extremely worthwhile – after all, they are your primary resource, and a healthy workforce means a more productive company. One of the major questions that arise when exploring this area is the difference between workers’ compensation and health insurance. How does each work, and what sets them apart from each other? They are both types of Business& Employee insurance that can benefit your workers in cases where they have been – or are likely to become – injured, or have fallen ill. Here are a few key differences between the two that will help you to navigate this important stage in the life of your new company.
One is Mandatory, One is Not
You are obligated by law to offer workers’ compensation insurance. It is one of the few types of insurance that a company is required to obtain by UK law. On the other hand, including health insurance within the list of benefits your employees receive is simply an option. However, you may find that investing in both is the most advantageous approach, as the two offer rather different elements of coverage.
A Little About Workers’ Compensation Insurance
this covers workplace injuries that are suffered by your employees and helps to pay resulting healthcare and recovery costs they may face.
Explaining Employee Health Insurance
Health insurance does not cover your workers for illness or injury in the workplace, but rather works towards preventing problems and paying medical bills that are not related to their work for you but may affect in the future. to make matters easier, if an issue is already covered by workers’ compensation insurance, it usually doesn’t enter into a typical employee health insurance policy.
Freelancers and Sole Traders
The only situation on which you won’t need to arrange any kind of health and well-being-based insurance for a worker is if they are a freelancer or sole trader. As is the case with their pension payments, individuals who aren’t directly employed by your business need to ensure that they have arranged insurance cover for their own possible future health issues.
Opting Out of Employee Health Insurance?
You are totally within your own rights as a business owner to decide against purchasing health insurance for the benefit of your staff, but you should definitely consider this carefully. Health insurance allows you to pay for measures that may prevent serious illness or injury to a valued employee at a later date, and obtaining it may mean that you are protecting yourself against losing that employee to ill health. In certain circumstances, a problem or condition – such as repetitive strain injury -could occur in such a way that you are liable and could be sued by the worker who has developed it. In this case, investing in employee health insurance would definitely have been worth your while.
So What’s the Next Step?
When you’ve decided on your course of action regarding employee health insurance, your next move should be to contact insurance brokers who can offer you a policy. Whether or not you decide to purchase health insurance, it’s still important to make an informed decision surrounding the exact type of policy you require in terms of workers’ compensation insurance. Most policies contain very similar clauses, but the minor details can make all the difference. You should always be sure to explain the exact nature of your business and the duties of its staff to your insurer, as they may be able to tailor make a policy that is perfect for the needs of you and your employees.
If you require further information about workers’ compensation or health insurance, all you need to do is get in touch with Rigby Financial today. Their offices are open from 9 am until 5.15 pm between Monday and Friday, and their legal specialists will be more than happy to offer you assistance and advice. Simply call the team on 01744 886077, emailenquiries@rigbyfinancial.co.uk or fill in their handy contact form that can be found here. Rigby Financial also offer expert advice and cover in the following areas: car insurance, home insurance, travel insurance, landlord insurance, private medical insurance, personal accident and sickness insurance, high net worth insurance and pet insurance.