Know What Employers Liability Insurance Covers

Insurance is an important part of the risk management system for small or large companies to protect against unforeseen damage. Of all types of insurance, liability insurance is considered the best, as it compensates for claims in respect of liability cases. There are three main types of liability coverage in Ontario – liability, product liability and public liability insurance. Here we discuss professional liability insurance.

As an employer, you are responsible for the health and safety of your employees at work. No matter how safe your business environment is, there is always the possibility of your employees getting sick or injured at work. If your employees feel responsible for an accident at work, they can sue for damages.

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Sometimes these claims can add up to thousands of pounds in compensation at work. Your company could go bankrupt if you don't have employer liability insurance to cover the claim.

In some countries, this is a legal requirement, not an option. In principle, all employers or freelancers who employ workers must have liability insurance.

This is mandatory for a limited liability company or when you deduct National Insurance (NI) and income taxes from your employees' salaries. You should also opt for this insurance if you occasionally hire staff, temporary or seasonal workers, trainees or subcontractors.

You need this insurance even if you work from home. When your customers or partners visit your store, it is better to get a combination of employer and liability insurance.