Every employer is accountable for the safety and health of employees when they working. It is his primary duty to provide a safe working environment to avoid workplace accidents. Even if he takes the proper preventive measures, if one employee is injured, the person who was injured can claim against the employer and make the employer legally accountable for the injuries. In these situations the employer must pay the employee for the cost of hospitalisation, as well as the legal fees. Since accidents happen at every workplaces, it’s logical for the employer to buy insurance that will allow him to pay for the compensation Church Liability Insurance.
The insurance for liability of employers helps protect businesses from financial liability. Let’s talk about the benefits of this insurance.
Who is entitled to the insurance of employers’ liability?
The insurance for employees is required by businesses who employ employees to work for their business. Even if the business has just an employee needs to have insurance for employers’ liability. In Ireland it is mandatory that every business purchase the insurance of employers’ liability.
Many employers do not bother with this rule as if they do not have employees. However, as per Health and Safety Executive (HSE) Ireland, any person is considered to be an employee of an organisation even if they enter into an agreement of service, or if pay-as-you earn (pay when you earn) deductions are taken from his earnings or when the employer has control over the time and place the employee performs his job.
Exemptions from taking the policy
Although the insurance for employers’ liability is required for all businesses however, there are some exceptions. Government department and municipal authorities as well as health and police authorities, companies with no limit that include the owner or spouse as an employee, sole traders or partnerships that employ only one person that own at 50 percent or more of the capital shares issued within the company, are exempt from the requirement to take a compulsory employer’s liability insurance policies.
Coverage level needed
In accordance with the law, all employers must carry liability insurance, which must be at least PS5 million. If the risk and the liabilities of the business are higher than this, the company will need greater protection. Since many insurance companies offer a coverage of at least PS10 million, there’s no need to be concerned.
Each employer will be issued an acknowledgement from the insurer following the purchase of the policy. The certificate should be displayed at the location which is visible to employees . The identical copy should be available whenever asked to do so by Health and Safety inspectors.
Things covered under the employer’s liability insurance
Insurance for liability of employers takes care of the entire range of claims that could be brought at the company, for instance the employee is involved in a fatal accident or is ill while at work. The insurance pays for the expenses of the person injured, as well as hospitalization and legal expenses.
Benefits of the policy
The advantages of this type of insurance are:
* Meets the legal requirement It is the first step since the liability of employers is a legal requirement in Ireland and the purchase of insurance is a legal obligation. In the event that you fail to purchase insurance can result in enormous fines of upto PS2,500 every day, the failure to show the certificate could be punished with a fine of up to PS1,000.
* Financial security that is guaranteed Insurance from a well-known insurance company will protect your assets by providing a security for a variety of risk. If you’ve taken out this insurance, you’ll need not be worried about costs should an employee be involved the victim of an injury. Insurance for employers’ liability therefore, protects companies from going bankruptcy.
Financial assistance for employees The insurance protects the employer from having to pay the amount of compensation however, it also allows employees to receive financial aid in moments of need. purchasing insurance for employers’ liability and having it displayed at the office can instill confidence and security to employees. It ensures that, when something goes wrong and they are not compensated, it will help employees to pay for the necessary expenses.
The insurance should be purchased through a reputable insurance brokerage firmthat can tailor it to your business’s needs is highly recommended. Employers’ liability insurance is therefore, crucial for employers since it does more than protect them from financial liability as well as protects employees by paying for the costs.