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.