Employers Liability Insurance – Protect Business and Your Employees
Employers liability insurance gives protection to the business owner (employer) and the worker (employee) alike. It is effective in three cases. First, in case your employee falls ill, second, he suffers an injury and third, in case of an employee’s death. Acquiring employers liability insurance is a legal obligation for every business. There is no escaping it. However, if you are your only employee or you don’t hire anyone outside your family, only then can you make an exception.
Employers liability insurance is not only mandatory in the United States, but also in other countries around the such as France, Great Britain, and Canada.
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.
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.
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.
EL insurance does not cover public. It only only covers your employees. In the event a customer or third party is injured on your premises, your commercial/public liability coverage will cover the costs if legal action is taken.
Employers Liability Insurance only covers employees falling ill, getting injured or death. It doesn’t cover you in case you face claims like employee termination based on faulty judgment or sexual harassment 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.
The beauty of EL insurance is that it protects you from having to directly pay costs in the event an employee is injured on the job. It protects both you, by being able to cover any costs without going out of business, and the employee, who may be unable to work temporarily.
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