If you are confused about whether you really need an employer’s liability insurance, you have come to the right place. Hiring the first employee is a moment to be celebrated for every small business owner. Hiring employees makes a small business owner feels like a real “employer.” While it may decrease your workload, it comes at a cost of higher responsibility. When your employee is working at the office or on a job site, you are responsible for his/her safety and well-being. The cost of medical care, recovery, and lost wages due to work-related accidents can be quite high. You should make sure that you are covered if something unfortunate happens to your employees while they are at work. That is where employers’ liability insurance comes into the picture. Here is why you need to purchase employers’ liability insurance to protect you and your business against claims and lawsuits by injured employees.
What Is Employers’ Liability Insurance?
Employers’ liability insurance covers the employer if one of their current or former employees get injured, sick, or dies in a workplace-related accident. The policy will financially cover business owners when they are liable to pay for damages to an employee after a work-related accident or illness. Damages may include illness, injury or death of an individual employed and in contract with the business owner. If you employ one or more permanent, temporary, or contract employees, you should consider investing in this type of insurance. An employee has a legal right to claim against you when he/she has been harmed while performing the job. For example, if a pipe burst in your premises and an employee sustains injuries as a result, the employer’s liability insurance will cover you against any claims from the employee and pay for repairs and possible doctor visits.
How To Reduce The Risk Of Claims?
As an employer, there are many steps that you could take to reduce to risk of claims. The first step is to introduce effective safety practices into the workplace. It helps reduce the chance of accidents or exposure to harmful substances. Provide guidelines for every employee to wear protective gear and equipment when dealing with harmful substances in the workplace. In fact, employers’ liability insurance should be part of your business insurance policy to protect your business against costly claims from employees. That way your business is financially protected in the event of unfortunate accidents.
How To Purchase Employers’ Liability Insurance?
Small businesses require employers’ liability insurance that scales with their business. The more employees you have, the more coverage you need. The best way to buy employers’ liability insurance is through an insurance broker. That way you have access to a wide variety of liability insurance products to choose from. A reliable insurance broker can help customise the policy to suit your business needs and budget. Custom Insurance is your trusted partner in South Africa when it comes to employers’ liability insurance.
Call Custom Insurance right now to get a quotation for employers’ liability insurance for your business!
