Different types of Employer’s Liability

26th February 2010

There are many different types of insurance plans out there. All of them have one thing in common: their plans can be extremely hard to understand. Employer’s liability insurance is often one of the hardest policies to understand.

Basic liability insurance is a policy that covers the pricy legal costs that may arise and add up quickly if something goes wrong and the business has a chance of being held as the responsible party. It will also cover damages that could happen because of an accident. Along with this comes the insurance for employers that have a need to hire staff.

For a business that has to hire employees or staff, employer’s liability insurance is a necessity. In fact there is a very big fine for every day that a business goes without the appropriate insurance so it can actually cost you quite a bit to not have the insurance. It is also a good practice for the insurance to cover every single employee.

In order to be an employee a person must be under contract to your company, have the national taxes deducted from their pay, you have complete control over where and when they work, and they cannot send someone in their place if they, for any reason, cannot make it to work.

There are exemptions to the rule that all businesses should have employer’s liability insurance. For one, if you happen to have no employee’s then you do not need this type of coverage. On top of this, if the only people you have working for you are family then you do not need this insurance. For any business that does not fit into the exemptions they will be required to have the insurance. However, you are encouraged to check with your local laws to be sure whether or not you fit into the exemption categories or not.

These types of policy’s only cover certain aspects of your business. For example if an employee becomes sick from something at work then the insurance will cover it. Also, if someone is injured at work for any reason this coverage will take care of not only the medical bills but the legal fees as well. For example, say that an employee gets cancer from a carcinogen in the work place then the policy will cover the medical bills. On top of this the policy will most often cover the ambulance fee and other fees that accumulate due to an injury in ht work place.

Another thing about the Employer’s insurance is that it does not just cover current claims. It will also take care of claims that a former employee makes as long as it is found that the business, (or employer), is indeed at a fault. This may include diseases or an illness that does not appear until after their employment with the said employer. Because of this it is very important for businesses to keep all of the paperwork on old insurances because you never know what the future holds. Without the proper paperwork you may have to pay for everything yourself.