What Is Employers’ Liability Insurance?
If you work for a company, your employer likely has some liability insurance to cover legal costs if an employee commits a wrongdoing. Many people will need this insurance, but it can be challenging to find information about what employers’ liability insurance is and how it might be used.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
What Is Employers’ Liability Insurance?
Employers can be held legally responsible for any wrongdoing committed by their employees. In particular, employers’ liability insurance covers legal costs in a worker’s medical malpractice, injury, or infection. Under this type of coverage, employers are entirely liable for their employees’ mistakes; however, there are cases where the employer is not required to be liable for an employee’s wrongdoing.
In these cases, employees will only be entitled to compensation if they can prove negligence on the employer’s part.
Requirements for Employers’ Liability Insurance
In the UK, employers must have some form of liability insurance. This applies to businesses with at least one employee, whether the business is large or small. In other countries, such as the United States, there are different requirements for employers’ liability insurance policies. Ideally, employers should have a policy that covers employees in the event of bodily injury, accidental death and disablement, death, and property damage.
Employers’ Liability Insurance If a person is injured at work, they must first determine whether their employer has insurance. If so, the worker should make a written statement to that effect.
To determine if you need a policy, you must establish how likely any wrongdoing will occur in your workplace.
Some examples of wrongful behaviour include:
- Medical malpractice (i.e., an error in diagnosis or treatment that leads to a worker’s injury)
- Injury (i.e. a passenger falls out of a car that a worker is driving)
- Infection (i.e., a worker uses equipment that spreads infection and infects other workers) • Contractual liability (i.e., a worker breaks a contract that they signed)
- Negligence (i.e., a worker makes a mistake that causes an accident)
- Breach of confidentiality (i.e., a worker leaks sensitive information to the public)
The list goes on, and it’s easy to see how an employer could be held liable for all sorts of things if they do not have the appropriate insurance coverage in place.
Some employers’ liability insurance policies also cover an employee involved in a personal injury claim. For example, if an employee injures someone while driving their car and claims against that person, the policy will cover any costs incurred.
When it comes to employers’ liability insurance, you cannot opt-out of purchasing coverage for yourself or your family members if you work for a company. If you choose not to purchase the coverage and there is an incident in which you (or someone you love) are injured, the legal fees could be astronomical.
So What Is Employers’ Liability Insurance? Choosing the Right Employers’ Liability Insurance Policy
Hundreds of liability insurance companies are available, with multiple different policies to choose from. You must choose a policy from the right provider to ensure you have the best protection possible. This is an essential step because the wrong provider could leave you with a bad policy that exposes you to losses.
It is also a good idea to ask your insurance broker or agent some questions about how your policy works to ensure that you are getting the best deal. For example, you can ask how long the policy lasts, what it covers, and how much it costs. You can also ask if there are any exclusions; for example, some policies may not cover certain types of injury or illness.
What Is Employers’ Liability Insurance? To Conclude
Asking questions about your employers’ liability insurance policy is an intelligent way to make sure that you understand how it works and what it covers. You can also talk about whether you are getting the right level of protection for your company with your broker or agent. If you have any concerns about your policy, then don’t be afraid to speak up; most providers will be more than happy to answer any questions you have so they can help you get the best protection possible.
Find out more about the importance of insurance here.
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
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