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.
So how can this insurance benefit you, the business owner? In case your employee(s) decides to file a lawsuit against you for an accident they suffered, the medical and legal and other costs will be covered by your insurance provider.
If you are not at fault for your employee’s injury, your costs can be substantially reduced or eliminated altogether. The determination of who is at fault in the case of an injured employee is a large determining factor in the cost and outcome of claims.
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.
In addition, your liability insurance certificate has to be displayed and accessible in your place of business. Your employees have to able to see it and access it. Some other highly visible places to display a copy of your certificate is the information board of your building, or have an electronic scan of the certificate on your website.
Employers liability insurance (EL Insurance) covers only your employees. It doesn’t cover people outside your organization. So if you want to cover the costs of general public injuries (or accidents) occurring in your business premises, you would require a public liability insurance.
Furthermore, EL insurance does not protect your from discrimination claims, wrongful terminations claims, harassment claims, etc.
Your insurer must be authorized, otherwise you will be breaking the law. Also, you would want to compare the premium costs of different insurers so that you get yourself a decent deal.
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.
About the author: Ben Ashfalk is passionate about employers liability insurance and liability insurance.
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