Employers’ liability insurance in the UK | Find out what it means

Many organizations choose to carry employers’ liability insurance to help cover them against legal costs and lawsuits from injured employees. The health and safety of your employees should be of paramount importance to you as an employer.

And at such fact, as an employer, it is vital for you to uphold that responsibility. Something as simple as your employee slipping on a wet floor could lead to a claim. As accidents do happen and it is almost impossible to stop them from happening, you can rather protect the vitality of your business with an employers’ liability insurance policy.

The image and review about your business or company could be really messed with by simple negativity from an injured employee. If you have a business or firm you truly see as an investment and you cherish so much, you need to protect the face at all costs.

Unless that, then you may not have any business with getting an employer’s liability insurance. Some employees can be bitter and head bent on ruining their employer’s businesses for ill-treatment. Maybe a show of lack of concern during their injury, they could go to any length to make sure they are dealt with.

And you do not want to fall into the trap of such employees. Therefore, we have brought you good news that can save you stress.

In this article, we are going to talk about everything that employers’ liability insurance represents.

What is employers’ liability insurance?

The first thing to know, you should know is that workers’ compensation coverage is mandatory in the UK. That means simply, that you need to purchase this coverage the moment you hire your first employees. Then after doing that, employers’ liability insurance can come in.

This type of insurance is meant to cover every other thing that workers’ compensation does not cover. The cover is there to protect you against any claims from your injured employee. However, employers’ liability insurance does not cover you against legal costs from employee lawsuits charging discrimination, sexual harassment, or wrongful termination.

It only covers you against the legal cost of claims laid against you by your employee regarding the injury. The cost it covers is to treat your worker if they are kind enough to not file a lawsuit against you. An accident is something we cannot totally avoid, so it is bound to happen anywhere, even in the office.

Why do you need employers’ liability insurance?

The first thing you should know before why is who. So, who needs to get this insurance cover for employers? Anybody who has decided to start up a company, a firm or a business, and has people he employed to work for him.

Whether it is just one person, two or more, you need to get this insurance cover in case they sustain injuries. Before you get the cover, you must check whether your workers’ compensation cover does not cover to that point.

If the case at hand then is not covered in the workers’ comp, then it is important you get the employers’ liability insurance cover. Your workers are your responsibilities the very moment they are on duty in your business place.

So, why do you need to get this insurance cover? You may not need anyone to tell you about the need to protect your legacy and business investment. A single or more negative review is capable of ruining what you have built for years.

Furthermore, you need to save the extra cash you would have used to cover a claim for better things. Going to defend yourself in the law court would not only cost your time, but it will also cost your money and image. For a simple fact, you need to protect your image, save your money and save your time.

How to get employers’ liability insurance

The most common way to get an employer’s liability insurance policy is in the package with workers’ compensation. Insurers sometimes may even call it Part Two coverage, wand the workers’ comp being Part One.

Some insurers sell that two coverage as one and a non-separable package, while others offer more flexibility on them. Part two insurance coverage is not mandatory coverage in many states, but insurers usually recommend it to companies as lawsuits can be very costly.

So you need to know what the coverage is all about then you can go ahead and search for the best company to get your cover from. Then check out if your workers’ compensation cover covers to an extent the issue at hand, then you may not need it at the moment.

Some states also allow their people to get coverage from the state fund. So, you need to check if your state is among those that buy employers’ liability cover for their people.

Workers’ compensation vs employers’ liability

Worker’s comp is the type of insurance cover that some insurers know as part one insurance. It is the first step a company takes after establishment. It covers the workers against work-related injuries or illnesses. So, the employers’ liability is a type two workers comp which covers the rest of the things that it cannot cover. It is more like the completion of workers comp.

What employers’ liability covers

There is a list of things that this insurance covers you from outside the work-related injuries, and illnesses. It can cover you as a company against the negative reviews and bad image that can be painted on the company.

If a worker of the company is ill and maybe dies on the sick bed, it could be the company did the little they could. If the family should decide to sue you as the employer because their dead child died because of a work-related illness. It can be a whole issue to go for defence in the law court.

So the list that employers’ liability insurance covers are listed below;

• Third-party lawsuits: This could be a distant person from the workplace. For example, if your worker gets injured by a rod and decides to sue the rod makers. The rod makers may decide to sue you who employed the person.
• Dual-capacity lawsuits: This covers you when a worker sues you as not just their employer, but also a landlord, manufacturer and others.
• Consequential bodily injury lawsuits: It also covers you when a non-employee files a lawsuit against you for sustaining an injury while taking care of an injured employee.
• Another thing it covers you from is a lawsuit from the family of a deceased worker. maybe they are asking for compensation or their income.

Cost of employer’s liability insurance.

Your premium would likely be higher if your business filed workers’ compensation claims before.

That is to say that the cost of your employer’s liability insurance is related to your worker’s compensation insurance cost and your claims history. Another thing that will affect the cost of your insurance is if your workers do dangerous work like construction.

Some of these works make it easier for them to get injured, and some of them like roofers. They stand a high risk of death and deep injury or illness. Another thing that influences the cost of your cover is the amount of salary you pay to your workers.

Knowing that part of what the cover does for you is to cover the salary of your workers, when for example. If any of your workers dies, the compensation that your policy provider will give to the family will include the salary.

So, considering these things, you can proceed to your provider and know your cost.

FAQs about employers’ liability insurance.