Employer Liability Insurance - Find Out Exactly What it Covers

Employers liability insurance will cover the expenses you incur when you have to compensate for any injury or illness of your employees they suffer from their job. It covers injuries and illness caused both on or off site. Employers liability insurance only covers your employees, and does not cover claims by third parties against you. For third party claims, you'll need public liability insurance. Injuries due to motor accidents are not covered by employers liability insurance but are covered by a motor insurance policy.

Generally, employers liability insurance covers employees against illness or injury while at work. The word “employee” has a specific definition here. Someone is described as your employee if:

•If contributions and income tax are deducted from their salary paid by you

•You can decide where, when and how they work

•No substitute is employed on their behalf by them

Small businesses should always opt for it because it can safeguard their financial position and business assets in case any claims arise. Many small companies went bankrupt because they did not opt for employers liability insurance and later had to pay for claims by employees for injuries. So to avoid any such situation in future, it is always better to get cover for such problems.