No matter how efficiently a workplace is run, accidents can happen. Small business employee insurance is there to ensure that these accidents are not followed by financial disaster. Getting the right insurance is a fundamental part of acting as an employer, and being without it may be seen as a liability that discourages investors and banks from doing business. Insurance provides security for everybody and means that, if the worst happens, you will not have to worry about finding the money to deal with expensive compensation claims.
Employers’ liability insurance
There are two types of insurance that an employer needs to consider in this area. The first is employers’ liability insurance. This covers the liability an employer has if an employee is injured or becomes ill due to problems with the working environment; for instance, it could come into play when an employee slips on an unmarked wet floor or when an employee develops breathing problems due to exposure to dangerous chemicals.
When taking out employers’ liability insurance, make sure that the premiums are not too high and avoid invalidating it; an employer will need to show that health and safety issues are taken seriously in the workplace and that the general standard of care for employees is good. Insurance of this sort is not there to cover carelessness or lack of concern for employee welfare.
Employee liabilities and indemnity insurance
For public-facing businesses and those that sometimes have guests on the premises, it is worth considering employee liabilities and indemnity insurance. This can also become relevant if one employee is injured due to the actions of another. In theory it is there to protect employees themselves from the possible cost of paying compensation, and is something employers may provide out of concern for them. In practice it effectively also protects the employer, as there are situations in which an accident victim might be able to claim against the business if an employee has too little money for a direct suit to be considered worthwhile. A good industrial accident solicitor can often find more than one way to frame a case, so it pays to be careful.
In most small businesses, employers and employees know each other; often they become friends. Having small business employee insurance means that if an employee is injured and feels the need to make a claim it does not need to destroy this relationship. An injured employee may need compensation money to cope with extra difficulties in their day-to-day life. Employers’ liability insurance can also cover the cost of any lost wages. A claim against an uninsured company could destroy that company and still not provide enough money to support the employee’s needs, in which case everybody would lose.
When insurance is in place, everybody is safer. An accident can then be looked on as what it really is – a bad thing happening to someone who deserves help to get better, and a valuable indicator of where safety precautions need to be tightened up.
Date Published: December 29, 2013
Author: David Brown