18 July, 2019
6 Considerations when choosing employer’s liability limits
Employers liability insurance protects your business from claims of negligence made by employees who have suffered an injury or ill health due to their work. Unlike other types of insurance, employers liability is compulsory. If your business employs workers based in England, Scotland or Wales, your business must carry EL cover to avoid substantial fines.
1. Multiple claimants
Your EL limit applies to each claim individually.hile the minimum limit should be able to handle a claim, it is important to keep in mind that multiple claims can emerge from a single accident.
2. Nature of activities
In general, injuries- such as loss of hearing and continuous care- tend to have larger EL claims, than those involving death. Review what activities your staff regularly participate in to better gauge the potential cost of an EL claim.
3. Inner limits
Your EL policy will most likely have common limitations. In general, these limitations include incidents arising from terrorism, war or nuclear risks. Learn what your policy limitations are to better insulate your business from risks.
4. Concentration of staff
If your staff is concentrated in one main area, or several smaller ones, you may need a higher EL limit because an incident that affects one employee could easily affect them all.
5. Hazardous locations
Some locations- such as production lines, railways, and construction sites- are more susceptible to incidents. In addition, these incidents are likely to involve a greater number of people. Identify whether you have any high risk, hazardous locations.
6. Future circumstances
An EL claim can be filed years or even decades after an employee has ended his/her working relationship with your business. During the time between buying an EL policy and a claim being settled, much could change to affect the final settlement values.
For a competitive quote on employers or public liability, please do not hesitate to get in touch with us. We would be more than happy to help, call us on 0121 778 2044 or fill in our online quote form.