A workplace is a hub of activity involving several tasks that involve a number of people and a varying degree of complexity. These activities can, and often do, result in workplace injuries and accidents, and some of them can be really severe. In extreme and unfortunate cases, a workplace accident can even result in one or more fatalities. It is the employer’s responsibility then, to ensure the health and safety of all employees at the workplace.
Employers’ Liability Insurance
Employers’ liability insurance exists to protect employers against potential injury compensation claims made by employees as a result of accidents that took place at work. It provides employers with an insurance cover against such claims and helps them meet the compensation costs for employee illness or injuries.
Most employers are obligated under UK law to acquire insurance against liability through the Employers’ Liability (Compulsory Insurance) Act 1969. While the employers’ liability insurance will cover disease and accidents caused on site and off site, illness and injuries resulting from auto accidents in the course of work can be covered by the employer’s motor insurance.
Employers’ liability insurance usually applies to employees based in England, Scotland and Wales but not to employees in foreign countries. An employer should however inquire about the foreign country’s laws to ascertain whether they need to take out any insurance or not.
Employers will be well advised to check that their insurance company is authorised or they may be in danger of breaking the law. You can check for authorised insurers on the online register maintained by the Financial Conduct Authority (FCA). Insurers are authorised if they conform to the terms of the Financial Services and Markets Act 2000.
The Conditions in the policy
Employers’ liability insurance is an agreement between an employer and an insurer whereby the latter would provide the former with compensation based on upon certain conditions under specific circumstances. The amount of money payable by the insurer can be restricted by particular conditions, but they should not be:
Failure to provide employees with protection against illness or injury.
Failure to maintain proper records or to provide information from the records to the insurer.
Failure to follow the insurer’s instructions.
Failure to meet a particular legal requirement regarding protection for employees.
Even though these conditions should never be present in the insurance policy, employers are mandated by law to implement protective measures in order to ensure the health and safety of their employees. Failure to fulfil legal responsibilities might lead to the insurer filing a lawsuit to reclaim the compensation paid.
You are obligated by law, as an employer, to protect the health and safety of your employees and to insure against any potential oversight or negligence in the fulfilment of those duties through employers’ liability insurance. If you require further information regarding employers’ liability insurance or if you need help claiming it, call Accident Advice Helpline today on their freephone number – 0800 689 0500.
Date Published: January 5, 2014
Author: David Brown