When an employee sustains work-related injuries or illness, they will always seek compensation from their employer or former employer. Employers' liability insurance will protect the employer from suffering a financial loss from such claims.
Employers' liability insurance is also known as Part 2 of the workers' compensation policy. It can come packaged with the workers' compensation policy to help protect the company against costs that may arise from workplace injuries, illnesses, and deaths.
How Does Employers' Liability Work?
Every employer needs to protect employees' health, whether they are a small team or an expansive workforce. If an employee gets injured in the line of duty, they could seek compensation. The same applies if they suffer an illness as a result of the job.
The legal costs that may result from such claims can run into the tens of thousands, and if you, as the employer, do not have sufficient insurance in place, you could be liable. Employers liability insurance protects your company in the event of such cases.
The policy covers any legal fee that your company may have to pay if you choose to defend your company in court, plus any compensation fees that may arise.
For instance, if an employee injures themselves while at work by tripping over a running cable on the floor, they might pursue legal action. The employers' liability insurance will cover all the medical costs, loss of income, suffering, and any other damages determined by the court. The same will apply if an employee falls sick due to exposure to asbestos while at work.
Which Employees Does Employers' Liability Cover?
The policy covers all types of employees, including full-time and part-time workers. It will also cover independent contractors if you contract them to work at your company. The policy also covers students, volunteers, and temporary staff you may employ at your business.
Who Needs Employers' Liability Insurance?
The law requires all businesses to have an employers' liability insurance for all the people they may employ through written, spoken, or implied contracts. The law requires companies to take a minimum cover of £5 million.
There is a fine of up to £2500 a day until you take the policy. Additionally, companies that do not display the employers' liability insurance certificate can be fined up to £1,000. You can check out some cheap employers' liability insurance policies here.
How Much will the Employers' Liability Insurance Policy Cost?
Several factors determine the cost of employers' liability cover, and the cost will vary from company to company. Some of the determining factors may include the number of employees at the company, claims experience, type of work at the company, and the business in general.
Employers' liability insurance is a mandatory policy that every business should have. You can find ways to reduce your claims and reduce the cost of the policy altogether. You can train your employees to identify any risks, keep the company clean and ensure that health and safety measures are in place.