Employer Liability Insurance - Summit Cover

Employer liability is relevant in today’s workplace situations where employees sue employers for failing to protect them from harm as a result of negligence in the workplace. Employer liability is also legal since organizations have the legal responsibility of ensuring that they offer their employees safe working conditions in case an employee is injured, the company is legally responsible for the employee.

This is why employer liability insurance is so crucial for any company of any size, an employer liability lawsuit can financially ruin them. SummitCover offers business insurance services and this post is a perfect briefing about employer liability coverage!

Employer Liability Insurance – What Is It?

This policy protects any financial losses sustained as the result of employee lawsuits alleging:

• Work-related injuries or illnesses: This is one of the most often used ones, which covers situations when employees sustain some injury while engaging in job activities.
• Wrongful termination lawsuits: These suits may also be filed by the employees who claimed that their discharge was unlawful without adequate reason.
• Discrimination or Harassment: Provide coverage for your business against discrimination claims on the grounds of race, sex, age, religion, or any other discrimination as well as against harassment by a supervisor or any other worker.

Why do Businesses need Employer Liability Insurance?

Workers' compensation insurance is legally required by the states at times. Even if it's not required where your operations take place, however, having this coverage remains an excellent investment - here's why:

• Financial Protection: Legal disputes can be expensive undertakings that include lawyer costs, compensations, and damages that prove to be very expensive to organizations. This policy affords protection against this financial risk which can make lawsuits disastrous to operations.
• Peace of Mind: It is an assurance that when you are in business, you do not have to bother yourself with issues such as lawsuits because you have this coverage.
• Defense Costs: It covers more than settlements or judgments in court cases: it also pays the legal expenses incurred to defend oneself in court proceedings.

Read more: Builder’s Insurance

Common Types of Claims Covered by Employer Liability Insurance

Employer liability policies provide coverage for many claims such as; 

• Wrongful Termination: Imagine an employee being fired for raising safety issues; employer liability insurance would cover them in case they sued for wrongful dismissal.
• Discrimination: Being ignored for promotion due to age would constitute discrimination; with your insurance helping defend this claim. 
• Harassment: Any supervisor creating an unsafe work environment might create harassment claims that need protecting, so having such coverage in place would protect from such claims as well.

How Much Employer Liability Insurance Do You Require?

How much insurance coverage you require depends on several factors!

• Industry: Certain industries pose greater risk than others regarding workplace injuries; construction firms for instance might require greater coverage than office environments.
• Number of Employees: As your workforce expands, so too will its risk. More employees means more potential for claims.
• Payroll: Insurance companies often base premiums on payroll size.

SummitCover recommends consulting an insurance professional who can assess your unique business requirements to determine an optimum level of employer liability insurance for you and recommend suitable coverage levels for you and your business.

Final Thoughts

Employer liability coverage should form part of any comprehensive business insurance strategy, providing your organization with essential protection. By learning the benefits and features of this policy, you can make more informed decisions to safeguard the future of both your company and your employees. SummitCover can assist with all of your business insurance solutions - visit us now for assistance!

Additionally, for further resources regarding builder insurance check out our blog posts about Builder's Risk vs Property Insurance Comparison and What are Builder's Risk Policy Extensions!