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Safety Insurance

What Does Safety Insurance Mean?

There are two basic kinds of workplace safety insurance:

  • Insurance provided in terms of Workman’s Compensation relating to workplace injuries
  • Private insurance policies taken out by employers to protect themselves from lawsuits arising from a workplace injury

Employers who fail to subscribe to worker's compensation, open themselves up to resulting legal action and a conviction if the court decides that an accident happened as a result of employer negligence.

Safeopedia Explains Safety Insurance

In most countries and states, workman’s compensation legislation ensured that the employer cannot be held liable for compensation exceeding the rates laid down in the relevant act, but this is not always the case. For example, New Jersey holds employers liable for amounts exceeding workman’s compensation guidelines if it can be proved that the employer was negligent or intentionally ignored workplace hazards. In states where these exceptions are recognized, private insurance supplements workman’s compensation.

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