photo credit: Robert S. Donovan
An employers liability insurance policy is a policy that protects employers from liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices. Some jurisdictions make it mandatory for employers to buy such an insurance policy for the reasons above. The major things it covers include an employee’s medical expenses for injuries sustained as a result of a work-related accident.
This includes disability coverage, lost wages, support payments to dependents and costs that you may incur relating to funeral expenses. Some items are excluded from coverage on an employer liability insurance policy, such as wrongful firing of an employee or sexual discrimination. So, it is really meant for any facility that has an employee base that could potentially be in harm’s way at any given moment.
Perhaps the best reason to obtain such a policy is having a workplace like a small factory, or any other facility, where higher risk work may be taking place. If you expose you employees to climbing, chemicals, or anything that could pose a potential health risk, an employers liability insurance policy is just about mandatory for those purposes. However, if your small or large business is not a limited company, and you are the only employee, or you only choose to hire close family members, you do not need to purchase employers liability insurance.
As with virtually any insurance policy, there are a lot of key things to look for when purchasing an employers liability insurance policy for the first time. Always compare insurance ratings. As you look for employers liability insurance, it is advised to consider only high-quality insurance companies. Check with AM Best at http://www.Ambest.com/ or Standard & Poor’s at www.Standardandpoors.com to review ratings on insurance companies and make a side by side comparison. Look for strong companies with the least expensive, yet most comprehensive, plans. Avoid companies who don’t tell you up front all of the benefits that you will receive upon purchasing your employers liability insurance policy.
So, make sure if you have a company that has employees, whether small or large, that you make the effort and buy a employers liability insurance policy for yours and your employees protection. If you choose not to keep the necessary amount of insurance, you risk having to meet the
costs of claims made against your business, or your person, yourself. Finally, review all your insurance policy information every year to make sure you are current and up to date with legislation for your locality and that, more importantly, you are getting the best deals.