There are different kinds of liability insurance. These include Business
Liability Insurance, General Liability Insurance, Fleet Insurance, PI
Insurance, etc. If you are employing staff for your business it is
mandatory by law to cover them against any kind of accident or injury at
work. In many instances this may also include self employed
contractors. As an employer it is important that you should have an
insurance cover that will pay when the employee gets injured, killed or
falls ill when at work. In most nations across the globe Employer’s
liability insurance is mandatory by law.
Benefits of Employer’s Liability Insurance
In the event any employee suffers from any injury or dies at work, the
employer’s liability insurance will pay the employee’s family. Having
such a kind of insurance policy reduces the employer’s risk against huge
claims from employees. Not having such a policy is detrimental to your
business interests since accidents are quite frequent and despite all
the precautions and safety measures, are unavoidable. In the UK, there
are many businesses that are still not covered for under the Employer’s
Liability Insurance. With raising awareness amongst workers world wide,
this can prove very costly for such businesses.
Arranging for Employer’s Liability Insurance
Employer’s Liability insurance is normally arranged when applying for
business insurance. Quite often, many business owners do not realize
that business insurance incorporates different types of insurance that
is relevant to the business. It may include: Employer’s Liability
Insurance, General Liability Insurance, Building Insurance or Property
Insurance and Motor Vehicle Insurance.
Cost of Insurance
The cost of any insurance is based on the claims experience of the
country and also and the perceived risk. This is normally determined by
the insurance companies themselves. In the United Kingdom, though the
minimum insurance to be held is £ 5.0 million, it is quite common for
companies to opt for £ 10 million. Within the same industry, the costs
may vary between employees belonging to different categories. For
instance, the cost of insurance for those working on scaffoldings and
roof tops is higher when compared to painters or fitters. Similarly, the
cost of insurance for those working inside an office is lower when
compared to those who are working in the field.
Finally, the Liability Insurance must cover all the employees in the
organization. Some employer’s insurance requires the exact details about
the number of permanent and temporary employees. In the United Kingdom,
the records of the Employers Liability Insurance should be retained for
forty years.
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