Employer’s Liability Insurance
covers legal and compensation costs arising from employee injuries or illnesses that occur while on the job
If a staff files a negligence case against his employer against work-related injury or sickness, Employer’s Liability Insurance can be used to pay for your legal expenses. However, workers can still file a case for extra damages if they are sure that the employer’s negligence was the reason behind the issue. If the worker sues your company, Employer’s Liability Insurance can pay for the legal expenditure, including:
1. Attorney’s fees
2. Court expenses
3. Settlements or judgments
Essentially, the Employer’s Liability Insurance will help your firm escape a legal negligence case arising from an employee injury.
What types of claims does Employer’s Liability Insurance cover?
Third-party Action
Employees who are receiving workers’ compensation for a workplace injury can’t sue their employer directly. However, they can sue a third party. For instance, an employee injured by a piece of machinery at the workplace can sue the manufacturer of the manufacturer.
Loss of Consortium
This type of case is filed by the spouse of a worker, injured at the workplace. The spouse can sue a company for injuries resulting in the loss of a family relationship like an employee’s at your workplace.
Dual-capacity Suit
A Dual-capacity lawsuit implies that the company and its employee have more than one relationship. For instance, a worker injured by equipment that your company manufactured can hold you liable as an employer as well as the manufacturer.
Consequential Body Injury
This type of claim refers to consequential damage. Consequential Body Injury comes to play when a spouse suffers injuries that occurred due to the initial employee injury. For example, the stress from a workplace injury can cause a spouse to suffer increased blood pressure that can cause an injury such as stroke.
Employer’s Liability Insurance is typically included as the second part of an Employee’s Compensation Policy. The first part of workers’ compensation protects the employee by paying out for medical fees and loss of wages, while the second part protects the employer from liability. If a company does not have Employer’s Liability Insurance, it can end up loosing a significant amount of money if an employee decides to sue it.
How to get the best policy
Find a specialized industrial insurance policy provider
You must deal with specialists. Since specialized insurance companies that deal with Employer’s Liability Insurance can give you a comprehensive solution. You need to search for one skilled insurance service provider.
Run a comparison study
You can find several sites offering you information about the various insurance providers, their policies and reviews. By running a comparison study, you can easily find an insurance company that is right for your needs and requirements.
Seek professional help
It would be advisable to find professional help to understand the policy, because, at times, it can be too technical for you to understand, and a person who is expert in the insurance business can help you in spotting the right kind of policy for your business. The insurance expert can make you understand the legal terms associated with the policies.
Read the terms and conditions carefully
You should read the terms and conditions. For instance, you need to know about the social exclusions, the add-ons of the policy, and more. Hence, take out some time and read the terms and condition carefully before buying the insurance plan.
Never let the business be vulnerable to the unpredictability of nature and happenings. You can keep everything under control by availing the best Employer’s Liability Insurance for your business and act with a sense of urgency when things go wrong without prior notice. So, stay safe.