Accidents can happen in your work place, depending on the nature of work being carried out. You or your colleagues might sustain injuries due to these accidents. Alternatively, you may develop an illness as a result of the work you do.
If you feel that your employer is responsible for these incidences you may decide to file a lawsuit seeking compensation from them. In these instances, it is vital for your employer to have an employer liability insurance cover.
What is employer liability insurance?
According to the Employers’ Liability (Compulsory Insurance) Act 1969, most employers are obliged to take on an employer liability insurance cover. This insurance is beneficial to both you and your employer.
As an employee, this insurance cover ensures you are protected in the event that you get an injury or illness whilst at work. You can then claim compensation from your employer and this will be paid out by their liability insurance company. In the event that an accident occurs or you develop an illness, this insurance will cover your medical fees. Support payments to your dependants and funeral expenses, in case you pass on, are also covered by this insurance.
The employer liability insurance protects your employer’s business against the high costs usually incurred arising from lawsuits filed against them due to employees’ injuries. It ensures that in case your employer is sued for compensation, they have the minimum level of insurance needed to pay the claim.
Who needs this cover?
Barring a few exceptions, employers who have one or more people working for them are required by law to purchase employment liability insurance. Anybody working for your employer under a contract of employment or apprenticeship (whether written, spoken or implied) is considered an employee. This may include volunteers, students on internship, sub-contractors and part-time workers. Your employer is therefore responsible for their health and safety while at work.
Is my employer exempt?
The businesses that may be exempt from purchasing employer liability insurance covers include:
- Public and governmental agencies and departments.
- Organizations financed through public funds, such as passenger transport executives.
- Health service bodies.
- Family businesses where all the employees are closely related to the employer as long as the business is not listed as a limited company.
How do I know whether my boss has employer liability insurance?
Employers are required to display a copy of their certificate of employer liability insurance where their employees can easily read it. The certificate must clearly indicate the companies covered as well as the minimum level of cover provided.
Your employer is also allowed to display the certificate electronically as long as all employees know where to find it and have reasonable access to it. This is especially suitable if you and your colleagues at work have access to computers as part of your work.
If you wish to make a compensation claim against your employer, contact us via Accident Advice Helpline website or call us on 0800 689 0500 to speak to one of our friendly and knowledgeable advisers.
Date Published: September 24, 2013
Author: David Brown