Is Employers Liability Insurance The Same As Workers Compensation

If an employee gets injured or falls ill at work, they may need time off. In severe cases, returning to work might not be possible.

If it’s work-related, they could claim compensation for lost income and expenses, with legal fees if they sue.

Employers liability insurance and workers compensation
Employers liability insurance and Workers compensation: Photo source (Sapling)

Is worker’s compensation the same as accident and sickness insurance?

Accident and sickness insurance, taken by individuals, covers income loss due to illness, injury, or job loss, excluding work-related incidents.

Who pays workers’ compensation?

Employer pays worker’s compensation for work-related illnesses or accidents, covered by employers’ liability insurance, which also handles claims, compensation, and legal costs.

What happens if you don’t have employers’ liability insurance?

Employers must have liability coverage policy or face daily fines of up to £2,500 and fines for not displaying the certificate.

Without insurance, the business covers employee compensation claims, which can be substantial.

How much cover do you need and how much will it cost?

Employers must have £5 million minimum cover, with many policies offering up to £10 million.

Costs depend on employee count and job type.

Claims can escalate quickly.

Do I Need Both?

Workers Compensation Insurance’ is not a separate product; it’s the same as ‘Employers’ Liability coverage policy.

There’s often confusion about the terminology.

This insurance covers compensation for employee accidents, illnesses, legal fees, and damages.

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