Employers’ liability insurance is a legal requirement for any business which has one or more employees. It is an insurance policy that protects employers from liabilities arising from disease, fatality, or injury to
employees resulting from workplace conditions or practices.
What does employers’ liability insurance cover?
If you have employees, there is a chance that they may become injured at work or become ill as a result of working for you. If this happens, they might be entitled to claim compensation. Employers’ liability insurance covers this cost.
An example of a situation where you would need to claim on your employers’ liability cover would be if an employee is injured while working on machinery without the proper safety precautions.
It also covers claims for employee illnesses that have been contracted as a result of working for you, even if they manifest after the person has left your employment. For this reason, you must keep on file all documentation related to your employers’ liability insurance, even if it has expired.