Employers’ Liability Insurance (Everything You Need to Know)
Did you know that as an employer, you’re responsible for your workers’ safety? That means you could be held liable if someone gets injured on the job. In this post, we’ll cover everything you need to know about employers’ liability, including what it is and how to avoid accidents in the workplace. Keep reading to learn more!
What is employers’ liability insurance, and why do businesses need it?
In the UK, employers’ liability insurance is a legal requirement for businesses with one or more employees. The purpose of this insurance is to protect employers from claims made by employees who have been injured or become ill as a result of their work.
For example, if an employee slips and falls at work, they could claim compensation from their employer for their injuries. If the employer doesn’t have insurance, they would have to pay the claim out of their own pocket.
What does employers’ liability insurance cover?
Employers’ liability insurance covers the cost of compensation claims made by employees who have been injured or become ill as a result of their work. It also covers the legal costs of defending a claim up to the limit of the policy.
Third-party injury
Most employers’ liability policies will also cover the third-party injury. This means that if someone who is not an employee of the business is injured or their property is damaged as a result of the business’s activities, the insurance policy will cover the cost of any compensation claims. For example, if a customer slips on a wet floor in a shop, the employer’s liability policy would cover the cost of their compensation claim.
Third-party property damage
Third-party property damage is not always included as a standard in employers’ liability policies. For example, if an employee of a company damages a customer’s car while loading it with goods, the employer’s liability policy would cover the cost of repairing the car.
Employee injury or illness
If an employee is injured or becomes ill while working, most employers’ liability policies will cover the cost of their medical treatment and any lost earnings while they are off work.
Some policies will also cover the cost of legal expenses if the employee decides to make a compensation claim against their employer.
How does the insurance work, and what are the benefits for companies?
The insurance works by protecting companies from the cost of compensation claims made by employees. It also covers the legal costs of defending a claim up to the limit of the policy.
The benefits for companies include:
- peace of mind that they are protected financially if an employee is injured or becomes ill as a result of their work;
- protection from the cost of legal fees if an employee decides to make a compensation claim;
- protection from the cost of repairing or replacing damaged property belonging to a third party.
What are the risks for companies that don’t have employers’ liability insurance?
The risks for companies that don’t have employers’ liability insurance include:
- being liable for the cost of compensation claims made by employees who are injured or become ill as a result of their work;
- being liable for the legal costs of defending a claim up to the limit of the policy;
- being liable for the cost of repairing or replacing damaged property belonging to a third party.
How can companies avoid accidents in the workplace?
There are a number of things that companies can do to avoid accidents in the workplace, including:
- risk assessments: identifying and assessing the risks in the workplace and taking steps to mitigate them;
- health and safety training: ensuring employees are aware of the risks in the workplace and how to avoid them;
- regular maintenance: ensuring that all equipment in the workplace is regularly maintained and safe to use;
- clear signage: ensuring that all potentially dangerous areas are clearly signposted;
- safe working practices: implementing safe working practices and procedures.
How much does employers’ liability insurance cost, and how can you get a quote online today?
The cost of employers’ liability insurance depends on a number of factors, including the size and type of business, the level of risk involved, and the amount of coverage required. We can provide you with a quote for employers’ liability insurance online today. Simply enter your details into our quote form, and we will compare a range of policies from leading insurers to find the best cover for your business.