Employers Liability Insurance | Business Insurance
What do we mean by Employers Liability Insurance?
Employers Liability Insurance is a form of insurance which pays damages in the event of an accident in the workplace, causing injury to an employee.
When do you need Employers Liability?
Unlike many jurisdictions, Employers Liability Insurance is not compulsory. However, if you employ somebody you do have an obligation to provide them with a safe place of work.
Why do you need Employers Liability?
If an employee is injured and the employer is found to be negligent, then Damages will be awarded against the company/sole trader/partnership.
Claims are often substantial and without Employers Liability Insurance, companies can be vulnerable to financial strain even bankruptcy.
How is Employers Liability shown in a Policy?
Liability Insurance is quite distinct from Property Insurance. As a result they will either appear as separate Sections of a “Combined Policy,” or a completely separate Policy on Special Risks*.
Employers Liability and Public Liability are the two types of Liability that you will most commonly find. Each has an individual Section.
Employers Liability has a standard Limit of € 13,000,000. The premium is normally rated on wage roll.
Points to Note
Employers Liability Insurance is closely linked with Health and Safety measures. Good health and Safety will reduce/minimise claims, which will in turn keep premiums lower.
Territorial Limits; this is important because employees might be working away from the premises. But you should note that if they are driving because this is a form of compulsory insurance, motor insurance is still required. If the employee uses their own car, then they should have this noted by their own insurers.
Typical description of an employee would be:
"Employee shall mean:
(a) Any person under a contract of service or apprenticeship with the Insured;
(b) Any labour master or labour only sub-contractor or person supplied by them;
(c) Any self-employed person;
(d) Any person hired or borrowed by the Insured from any public authority, local authority, company, firm or individual;
(e) Any member of the Insured’s family or household;
(f) Any person undergoing training, educational or work experience programmes"
*High Risk cases such as cases with exposure to the US or high frequency of claims