Employers have to take out insurance cover, called employer's liability insurance, to cover claims by employees against the employer for damage caused to them while they are at work.
Workman Compensation Acts or Employee's Compensation Ordinances or whatever they are called in your country provide for the payment of compensation monies to employees who may be injured as a direct result of their job. However, employees have a common law right to sue their employer for negligence in some countries and so it is advisable for employers to extend any policy to include Employer's Liability cover.
The responsibility of an employer to reimburse an injured employee for accidents occurring in the course of employment. Such liability is separate from and is in addition to any statutory liability created under workers' compensation Law. Employer's liability is usually insured by a separate section under a workers' compensation policy.
covers the liability of an employer against claims made by his employees. Employer's liability affords protection to employers who do not come within the scope of the Worker's Compensation Act. It is important to note this is not a replacement option to Worker's Compensation.
This is a legal requirement and protects your legal liability against compensation, claimants costs and expenses in the event of death or injury to an employee. The minimum indemnity limit by law is currently £5 million, although most insurers automatically provide a limit of £10 million. It is essential that you notify us as soon as you are aware of an incident that may give rise to a claim and that you do not engage in any correspondence with the claimant or their representatives.
Under the Employers' Liability (Compulsory Insurance) Act 1969, employers are under a statutory duty to take out insurance against claims by employees for injuries/disease arising in the course of or out of employment. It is a criminal offence not to display the insurance certificate.
Workman Compensation Acts provide for the payment of compensation monies to employees who may be injured as a direct result of their job. However, employees have a common law right to sue their employer for negligence, for example failure to provide a safe system of work. So it is advisable for employers to extend the Workmen's Compensation Policy to include Employer's Liability cover.
Part B of the workers compensation policy that provides coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law. (See EXCLUSIVE REMEDY)
