Saturday 27 October 2012

Employers Liability Insurance - Protect Business and Your Employees

By Sam Taylor-Smith


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.

Your insurance provider is obligated to all the costs incurred if an accident happens at your business and your employee or employees decide to take legal action. Your insurance provider will cover your legal fees, medical fees, and any other fee related to the legal proceedings.

When covered by an employers liability insurance, part or whole of the costs of a claim may be covered for you. This depends upon the factor as to who was responsible for the accident in the first place. If it was your employee himself, you don't have to worry about the costs any further.

The punishment for not purchasing employers liability insurance is very severe. Your business will be fined heavily each day you do not have liability insurance for your employees. Furthermore, your business may be shut down entirely by health and safety regulators, in addition to heavy fines, if you fail to purchase employer liability insurance.

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.

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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