Logistics is crucial to the economy as it ensures the smooth movement of goods and services across the country. It supports manufacturing, retail, e-commerce and agriculture industries by enabling efficient supply chains. However, like any other business, logistics comes with its own set of challenges, most of which arise from the challenging work environment where employees and contractual staff are at risk.
To mitigate these risks, particularly financial ones, one of the most recommended products is workers' compensation insurance. Let's discuss how this policy offers financial security against workforce-related risks in the logistics business.
Understanding coverage under workmen’s compensation for logistics business
If you are a logistics business owner, purchasing a workmen’s compensation policy online provides peace of mind due to the following coverage.
- Manual handling injuries
The logistics business involves lifting heavy packages, moving pallets, and loading and unloading cargo. These tasks demand physical effort and your staff who perform them are at risk of injuries and muscle tears. Workers' compensation insurance comes in handy here.
Suppose a warehouse worker lifting a 50 kg box sustains shoulder dislocation. The insurer will cover their medical bills, freeing you from any such financial obligations.
- Legal costs
In logistics, various unfortunate incidents may occur due to unintentional negligence. Suppose the shelves in your warehouse have deteriorated due to rust, but due to stacked goods, it goes unnoticed. One day, while placing items, the unstable shelf falls, resulting in a head injury or fatality of your worker. In this situation, workers' insurance comes in handy if the deceased's family members file a lawsuit against you or demand hefty compensation.
The insurer will take care of advocate charges, court fees and other related expenses.
- Lost income
Warehouses and logistics centres often have high-power machinery, wiring, and flammable materials. Even minor negligence can lead to electrical malfunctions or fire outbreaks, causing burns, electrocution or even explosions. If such an incident injures any of your workers, it will keep them off work for a specific period. For example, if a short circuit in a storage unit causes a fire, resulting in severe burns that put the victim out of work for three months, the insurer will cover their lost wages/salary. It will also assist them in their rehabilitation from this traumatic situation.
- Death cover
Logistics often involve handling chemicals, fuels or other hazardous materials. Accidental exposure due to spills, leaks or improper storage can not only lead to respiratory problems, burns or poisoning but also to the death of your worker(s). In the unfortunate event of death, the WC policy provides a lump sum payout to the deceased's family members, ensuring they remain financially capable of managing day-to-day expenses and other necessities.
Tips for logistics workers and employers
If you are a worker in a logistics company, here are a few things to remember:
- You must know what injuries, illnesses and situations your workmen's compensation insurance covers. Read your policy or ask your employer to clarify details like medical expenses and lost wages.
- If you get injured on the job, inform your supervisor immediately. Delayed reporting can complicate the claim process and you may risk losing benefits if you wait too long.
- Maintain a record of the incident, including time, place and witnesses. Documenting everything will help if any disputes arise regarding your claim.
- Your employer may update the workmen's compensation policy over time. Stay informed about any changes to ensure you receive all entitled benefits in case of an injury.
If you are a business owner, remember the following pointers:
- Choose a workmen's compensation policy that provides sufficient coverage for medical expenses, disability and lost wages. Insufficient coverage can lead to financial loss or liabilities for your company.
- To prevent workplace injuries, conduct regular safety training sessions. Teach your employees about lifting techniques, equipment handling and emergency responses. This will lower the likelihood of filing claims.
- Where possible, offer light-duty or modified roles to employees recovering from injuries. This helps them stay engaged while reducing compensation costs for lost wages.
- Business risks change over time, so periodically review your workmen’s compensation policy to ensure it aligns with current industry standards.
Conclusion
Workmen’s compensation insurance is important for protecting logistics businesses against the financial impacts of workplace-related risks. This policy covers medical expenses and lost income, legal costs and even death benefits, ensuring both employers and employees are protected.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.