What you need to know about employer’s liability insurance in the United Kingdom
Every employer has the responsibility to ensure that those working for them do so in a safe environment and that their health is not at risk. It is also the duty of the employer to assess the hazards the employees are exposed to, put up measures to enhance safety at the job and ensure all incidences are effectively dealt with.
In the United Kingdom, the employer’s liability (compulsory insurance) Act 1969 puts it is clear that the law is meant to ensure that employers insure their employers when claims arise from an accident or medical condition they may develop as a result of working for them.
This also includes claims made against the company by previous employees who have developed medical conditions because of working at the company. These claims usually involve the employees or previous employees seeking compensation or medical fees and the employer should have at least a cover for these. This is reinforced by the act as not having an up to date insurance policy will have you on the wrong side of the law.
However, those operating businesses that are mostly owned by the employees, those that are family businesses, those that deal with provision of health services and the public entities are some of the industries not liable to having the compulsory license. Conditions when getting the employers liability insurance in the United Kingdom
In the United Kingdom, it is in addition against the law to acquire the license from an insurance company that is not certified. The employers therefore need to take precaution on ensuring that the insurance company is registered and authorized. Insurance covers will vary making it possible for employers to choose flexible covers that actually fit their line of work.
When looking for an ideal insurance cover, ensure to read the fine print. In many cases, the conditions may not be favorable to you and might seem that the insurance company is being unscrupulous or dishonest. The insurer may also be too unreasonable about the conditions when they will refuse to pay for a claim for instance failure of reporting some incidences. Ensure to come to an understanding regarding when the insurer will provide compensation before signing the policy.
Once you get the certificate, have a copy of it in a place where the employees can read it with ease or have it on the company website. Also, keep the past insurance certificates in case a claim is made by past employees. Getting legal advice will help you to get more details on employer’s liability insurance including the particular employees that actually need to be covered and what happens upon failure to have coverage. For an interpretation of the compulsory license act, one will need the court of law.
The importance on the employer’s insurance cover for business’ finances
Other than adhering to it because it is compulsory in the U.K, employers need it to enable them meet the charges that come with the legal claims. Many companies around the world have gone under upon settling claims made by employees on injuries related to the work they are doing which drain them financially. This cover has the employees feeling secure and enables businesses to continue with their activities without having to worry about directing a lot of their finances to settling claims. Other than paying for the claims, the employer’s liability insurance cover becomes financially convenient when it comes to paying legal fees and generally covering the legal process.