How Do I Create a Workers' Compensation Policy for an Employee at a Client Site?

Dear All,

I hope you are doing great.

I'm Hema, working as an HR coordinator in a Networking Company. One of my employees is currently stationed at a client location, and the client has requested a Workers' Compensation (WC) policy for my employee to be allowed to work there. He is a Network Support Engineer. Could you please guide me on how to create a WC policy for my employee? Is there a specific format that needs to be followed? Your valuable suggestions would be greatly appreciated.

Thank you.

What he probably meant must be covering the employee under an insurance scheme for accidents/employment injuries to cover his liability as the principal employer. The general insurance companies offer these schemes. First, ascertain from your client what he means by workmen's compensation policy.

B. Saikumar

Workman Compensation Insurance for Contractors

All large employers that are not covered under ESIC insist on the employees of all contractors being covered under a workman compensation insurance policy. This policy is specifically meant to reimburse the employer for the amount of compensation under the Workman Compensation Act (now referred to as the Employee Compensation Act).

You should contact one of the insurance companies to ensure your employees are covered. It is advisable to do so even if your client does not request it, as compensation claims can have a significant impact on your cash flow, potentially leading to the shutdown of your business.

Please remember that a standard accident insurance policy will not suffice for this purpose.