Each employer is responsible to ensure the safety and health of employees at work. He has the primary responsibility to create a safe work environment to prevent accidents at work. Even if you take all precautions, an employee can still be injured and sue your employer. He is legally responsible for the injuries. The employer must pay the employee for hospitalisation costs and legal fees. Employers should purchase insurance to cover the cost of any injuries that may occur at work.
Employer’s liability insurance protects employers from potential liabilities. Let’s talk about this insurance and the benefits it offers.
Who needs employers’ liability insurance?
Companies that hire employees to work for them must have employer’s liability insurance. Employers’ liability insurance is required even if there are only one employees. Every company in Ireland must have employer’s liability insurance.
Employers ignore this policy because they don’t have employees. According to the Health and Safety Executive (HSE Ireland), anyone can become an employee of an organisation, regardless of whether he signs a contract of employment, if the PAYE or pay as you earn (pay as your earnings) deductions are made from the wages, or if the employer controls when and where the employee works.
Exemptions when taking the policy
Although employers must have liability insurance, there are some exceptions. Non-limited companies that have the owner or one of his family members as employees, sole traders, partnerships with only one employee and which own at least 50% the issued share capital are exempt from the compulsory employer’s liability insurance policy.
Minimum level of cover
Employers must have employer’s liability insurance that is at least PS5 million, according to the law. The company may need more coverage if the risks and liabilities are greater. There is no reason to be concerned about the minimum PS10 million coverage that most insurance companies provide.
After purchasing the policy, each employer will be issued a certificate by the insurer. The certificate should be kept in the workplace, so that employees can see it. It also needs to be available for inspection by Health and Safety officials.
Items covered by employers’ liability insurance
Employers’ liability insurance protects against all claims that could be brought against them, such as if an employee is injured or dies in an accident. The insurance generally covers the costs of the injured and legal and hospitalization expenses.
The benefits of the policy
These are the benefits of this insurance:
* Fulfills legal obligation: First, employers are legally liable in Ireland. Therefore, the purchase of the same fulfills the legal obligation. Failure to buy insurance can result in huge fines of PS2,500 per day. However, failure to present the certificate could lead to a PS1,000 fine.
* Financial security guaranteed: Insurance from a well-respected insurance company provides financial protection by covering a broad range of risks. This insurance covers you for any injuries that an employee may sustain. Employer’s liability insurance saves companies from going bankrupt.
* Financial assistance for employees: This insurance saves the employer the cost of the compensation and allows employees to get financial help in times of emergency. Employers’ liability insurance can be purchased and displayed in the workplace to give employees confidence and security. They are assured that they will be compensated for any losses.
It is recommended to purchase insurance through a trusted insurance brokerage firm that can tailor it to your company’s needs. Employers’ liability insurance is important for employers because it protects them against financial liabilities and also compensates employees for any expenses.
