This insurance helps protect a company against its legal liability to pay damages and costs to persons employed by them who are injured or suffer loss of or damage to their property as a result of their employment.
In brief this means that if an employee alleges you have failed to protect them against suffering an injury or loss then this insurance will respond to an employee’s claim against you for injury to or loss or damage suffered by them.
This is a compulsory insurance within the UK where you have employees as detailed in the Employers’ Liability Insurance Act 1969 and its subsequent amendments.
- An employee is injured whilst employed by you and working on a contract at a third party’s site. They can claim against you as the employer if you failed to ensure that the site where they are working is safe. They also have the option to claim against the company based at the site, and your insurers would have the option to recover losses awarded should they be found to be the one’s that are liable.
- If you can be found legally liable, this insurance will respond if an employee’s personal property is damaged while working for you.
- An employee visits your premises to collect some equipment and falls down the stairs. If you can be found legally liable this insurance will respond in terms of injuries sustained and the associated compensation award and legal costs.