In most countries, employers liability insurance is mandatory. In countries where this form of insurance is not mandatory, there are instances of small companies becoming bankrupt when claims are filed against them. Injuries that occur due to motor accidents may be an exception to this because it can be covered separately under a motor insurance policy.
Any businessman or professional who has employed staff should consider opting for employers liability insurance. Businesses that avail the services of trainees, temporary workers or sub-contractors are also included under employers’ liability insurance. It is also compulsory in case of limited companies.
Here are some situations when an employee has the right to file a liability claim against the employer:
Workmen compensation insurance policy is a part of the general liability insurance. The purpose of the policy is to ensure that the injured employee does not suffer total income loss. Under this policy, employees are protected against any injuries they face at the workplace.
In some instances, the damages may be paid to the family of the injured if the latter becomes incapacitated. Workmen’s compensation may also cover injuries that occur during official work performed outside the workplace.
Take a simple example of an accident that occurs during the delivery of goods. In Workmen compensation insurance policy, the premium depends to a great extent on the company’s services. The insurance may also cover vocational rehabilitation. In certain cases, the employer is liable to pay out two-thirds of the salary to the injured employee. This may continue till the employee is ready to resume work.