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Employers’ liability insurance explained

Employers LiabilityAs an employer, you probably regard your employees as your most valuable asset.

Unfortunately though, employees also bring with them numerous risks than could prove to be financially catastrophic to your business unless you have appropriate employers' liability insurance in place.

Most employers will recognise immediately some of these risks:

  • The staff member who is injured on your premises; or,
  • if in legitimate pursuit of their employment, off-premises.

Not only could their long-term loss of income be something they expect their employer to deal with, but also in some cases you could find yourself responsible for the costs of their care provision.

Such risks have been around for a long time and many are now covered by health and safety or occupational legislation. In fact, by law most employers now must take out employers' liability insurance to protect themselves and their staff against such risks. Staff related risks though do not stop at accidents. It is increasingly common these days to see claims for:

  • Stress-related illness;
  • Sexual, racial or ageist discrimination;
  • Unfair dismissal:
  • Sexual harassment.

In any such claim, there will be large potential legal fees to consider. Should you lose, the financial awards against you could be staggeringly high.

If that's not bad enough, you may also need to consider your liability, as an employer, should one of your employees injure someone or damage their property while in the process of legitimately engaging in their employment on your behalf.

This indicates a key point - the area known generally as 'business insurance' is complicated and expert specialist knowledge is required to ensure that you have the right insurance cover to protect you.

This is why using a specialist provider of employers' liability insurance, such as ourselves, for consultation can help you get the protection that your business needs. Unlike many of the larger companies, we specifically avoid the 'hard sell' and offer consultation entirely without obligation. It may be advisable to think about getting some advice in this important area if you have any doubts about your existing insurance cover.