Employers are responsible for safety of employees. Accidents may occur at workplace, which may cause injury or illness to employees and they may claim for compensation, if they feel the employer is liable. Even if the injury/illness occurs outside the workplace, but is job-related, compensation is to be paid.
Employers’ liability insurance is an essential cover for businesses regardless of their size – small, medium or large. It covers employers against claims made by employees, when they are injured or fall ill in the course of work, and initiate lawsuits. This insurance thus, offers financial protection to the health and safety to employees at work.
This article discusses the benefits of employers’ liability insurance to the employer and the employee, and urges business owners to opt for it.
Benefits to employees
Employers’ liability insurance guarantees employees financial compensation when the employee gets job related injuries or illnesses at workplace or outside, for which the employer is liable. This insurance covers cost of medical expenses and loss of wages. It also covers the expenses involved in litigation and compensation upto the policy amount.
If the employee dies or gets permanent physical disabilities, this insurance offers coverage for the cost of legal procedures and also pays the necessary compensation if the employer’s business becomes defunct.
Having been covered under this policy, employees feel secure and are at ease, and will be more focused and therefore be more productive. This leads to improvement in the profitability of businesses in the long term.
Benefits to employers
Employers are likely to face liabilities because of employees’ claim for compensation for injury at employment. This comes in the form of litigation and resultant cost including payment to the attorney, going to court of law, and above all needless anxiety. Employers’ liability insurances covers these expenses. The insurance covers financial loss caused as result of payment of compensation as well.
Purchasing this insurance will enable business people to run their business without having to worry of the probable consequence of business operations.
Get the right insurance quotes from reputed insurance broker
Get the right insurance quotes from reputed brokerage agencies, according to your business’ need.
Reputed brokerage agencies are known for their expertise in the area and excellent grasp of the liabilities your business likely to encounter. To find such agencies, research thoroughly. The amount of insurance cover you need depends on the type, size, number of employees, location and risk factors.
Employers’ liability insurance helps both the parties:employers and employees. Thus, the parties involved are equally benefited. Although the unfortunate situations wherein this insurance comes to rescue the parties can not be predicted and ruled out, it helps them financially find a way out.