Wednesday, July 15, 2009

Employers Liability Insurance - Protect Business and Your Employees

By Ben Ashfalk

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.

USA, Britain and many other countries force a policy of mandatory employers liability insurance acquisition.

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.

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.

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.

Make sure your insurance certificate is viewable by your employee(s). Put up a copy of it on notice boards in your office, and perhaps also on the company website.

Employers liability insurance will only cover your employees. For people outside of the organization, you will need a Public liability insurance policy. This is meant to cover the case of a visitor suffering an accident inside your organization's premises.

Employers liability insurance doesn't cover claims such as wrongful termination of an employee or sexual harassment or sex discrimination 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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