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Any losses that occur will obviously affect the bottom line and that is why it is vital to consider the cost of employer's liability insurance as part of the overheads of running that business.
This kind of cover not only compensates the employees for any damage caused to them, it also means that the employer will not have to dig into his pocket for compensation payouts.
This could mean the difference in succeeding or sinking in this very competitive world of ours.
Every owner of a business owes a duty of care for anyone on the premises.
This covers workers and visitors alike.
No matter how careful people are, there is always a time when something untoward will happen.
Any person will claim from the business if they are damaged so getting cover should be the first thing on the agenda when a business is opening.
In extreme cases, this kind of payout will run into tens or hundreds of thousands and there are very few businesses that can survive a traumatic event like this for sure.
When is this insurance used? In Britain, this kind of insurance is compulsory so businesses there have no option.
Indeed, any company that is operating, whether a one man business or a large conglomerate, must have this kind of cover in place and the cost of employers liability insurance can run quite high if there are many workers.
Any company that deducts the normal contributions to the government will also have to have this cover even if the hiring of staff is on a temporary or seasonal basis.
If the company is responsible for work materials, where someone works or what they do, the insurance is needed.
Those companies that have staff working from their own homes are not exempted since safety here is also important.
In fact, most companies will have a mix of Public Liability cover and the one already mentioned.
The only company allowed to opt out of this kind of cover is the family run business or one that is not a limited company and there is only one employee, the owner.
If it is a limited company, and the one employee owns fifty percent or more of the share capital, this one is also exempt too.
What does this cover include? Any employee that gets damaged has a right to claim against the company.
This could be through an accident or through illness directly connected to the workplace or off the site.
It will cover any legal fees when defending a claim but it also assures workers that their claims will be met.
Different Scenarios for Claims If the salary calculation is incorrect; the working hours not adhered to; accidents or illness connected to the work environment.
All or any of these scenarios could lead to a claim against the employer.
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