Employers Liability Insurance – Covers both Employer and Employee
All businesses are required to have employers liability (EL) insurance. This particular business insurance covers compensation costs and any legal fees incurred if an employee falls ill or gets injured at their place of work. Furthermore, employer liability insurance will also protect the employer if the employee dies at their place of work. There are few exceptions when it comes to obtaining this type of insurance; one employee operations (sole proprietor) and businesses that employ immediate families are not obligated to secure this type of liability insurance. However, if you employ anyone other yourself or immediate family members, it is mandatory for you purchase employers liability insurance by law.
Employers liability insurance is a legal obligation in many countries of the world, such as the USA, Britain and many others.
The protection employers liability insurance offers is great. In the event of an accident, and your employee(s) decide to sue you, the legal and medical fee will be covered by your insurance provider.
What the claims bring about will depend upon whose negligence caused the accident in the first place. If the employee was at fault, the extent of his fault will determine as to whether your costs are cut down or they completely vanish.
Note again that employers liability insurance is a legal obligation. If you did not get it, you can be punished under the law and may have to pay a fine for each day that your employee(s) were not covered. In fact, a health and safety agency may even shut down your business.
The insurance certificate that you get must be available for your employees to read. You can put up a copy of the certificate on your company’s information board and perhaps put another copy on the company website, whatever way suits you better.
Employers liability insurance will only cover your employees. For people outside of the organization, you will need a Public liability insurance policy. This is meant to cover the case of a visitor suffering an accident inside your organization’s premises.
Employers liability insurance doesn’t cover claims such as wrongful termination of an employee or sexual harassment or sex discrimination etc.
The insurance provider you get insurance coverage from must be authorized. Otherwise, you are breaching the law anyway. Make sure you take out the time to compare the costs of various insurance providers before signing up with any particular one.
Employers liability insurance will save you money in case your employee(s) suffer an accident. On the other hand, it gives employees a sense of security and protection. Employers Liability Insurance is by all means a win-win situation for both business owners and workers.