What Protection Does Employers’ Liability Insurance Offer a Business?

Unlike in the UK, in Ireland it is not compulsory for a business to take out employers’ liability insurance. However, it is generally deemed to be prudent to do so, given the protections it affords employers against claims that maybe made by employees.

Employers’ Liability Insurance is a type of insurance coverage that protects businesses against claims made by employees who have suffered work-related injuries or illnesses. It provides financial protection to the employer by covering the costs associated with legal defence, settlements, or judgments resulting from such claims.

Here are some key protections that are generally offered by Employers’ Liability Insurance:

Employee Injury Claims

If an employee is injured or falls ill due to their work activities, they may hold the employer liable for the damages. Employers’ Liability Insurance covers the costs of defending such claims and may provide compensation for medical expenses, lost wages, rehabilitation and other related expenses.

Legal Expenses

In the event of a lawsuit filed by an employee, employers may face significant legal costs, including solicitors’ fees, court expenses, and settlements. This insurance helps cover these expenses, ensuring that the business does not face a substantial financial burden.

Compensation for Damages

If the employer is found liable for the employee’s injury or illness, Employers’ Liability Insurance provides financial compensation to cover the damages awarded by the court or agreed upon in a settlement. This can include payments for medical bills, disability benefits, and pain and suffering.

Occupational Diseases

Employers’ Liability Insurance may also extend coverage to occupational diseases that may develop over time due to work-related conditions. This ensures that employees who suffer from long-term health issues can seek compensation for their medical treatment and other associated costs.

As ever with insurance, it is important to seek advice from your Insurance Broker about the precise terms and coverage offered. Employers’ Liability Insurance may vary depending on the insurance provider, the nature of the business, and local regulations. Business owners should consult with insurance professionals to determine the most suitable coverage for their specific needs.