Employers Liability Insurance is an insurance policy that safeguards employers from liabilities arising due to injury, disease or fatality caused as a result of poor workplace conditions or unconducive practices that are being followed. To ensure safety for people working in an organisation, some jurisdictions have made it compulsory for the employers to buy this insurance.
Acquiring liability insurance will have employers meet the cost of compensation claimed by any employee for a damage sustained to him/her. The employers are responsible for the health and safety of their employees while they are at work. To hold liability insurance policy is mandatory for employers because as complies with the law, the employers would be charged a fine if they do not buy it. For them, having an insurance certificate is a must where the names of the company and insurer need to be mentioned along with the level of coverage.
The ones who need not to buy this employers liability insurance policy are people working in government departments, agencies, police authorities, and nationalised industries like health service bodies and primary care trusts. Family-run business where employees are closely related like father, mother, brother, sister, son, daughter, are also exempted. However, the exemption is not applied to those family businesses that are incorporated as limited companies. Others who are also excluded from this norm are unpaid working students or people who are not employed but are conducting training programs for the benefits of youths and adults.
As an employer, you need to ensure safety at workplace and the first step in this is to have liability insurance policy. To be a good employer, you need to keep every record of your employees that include the strength of the employees working in your company, the task assigned to each employee, and what are their respective incomes. Not only it is mandatory by law but it will also be required at the end of your policy period, where you would need to submit details in your statement. Needless to say, employers liability insurance is an assured way to keep your employees healthy, safe and secured as well as to keep your business running without any obstacle.