Employees Liability Insurance
Content
Workers compensation insurance provides medical care, cash benefits, survivor benefits, and rehabilitation services to workers who are injured or die from job-related accidents or disease
◦ Benefits are paid on the principle of liability without fault ◦ The workers compensation and employment liability policy contains three parts:
Part One: Workers compensation insurance Part Two: Employers liability insurance Part Three: Other-states insurance
Workmen's Compensation Insurance An employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. Such compensation is payable under the Workmen's Compensation Act. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as 'Employers' Liability Insurance'. For example, workmen's compensation insurance by United India Insurance Company Limited. This policy provides insurance against the following risks:Indemnity to insured against his liability as an „employer' to accidental injuries (including fatal) sustained by the „workman' whilst at work.
On extra premium-medical, surgical, and hospital expenses including the cost of transport to hospital for accidental employment injuries. Liability in respect of diseases mentioned under the Workmen's Compensation Act, on additional premium, which arise out of and in the course of employment
Workmen's Compensation Insurance An employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. Such compensation is payable under the Workmen's Compensation Act. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as 'Employers' Liability Insurance'. For example, workmen's compensation insurance by United India Insurance Company Limited. This policy provides insurance against the following risks:Indemnity to insured against his liability as an „employer' to accidental injuries (including fatal) sustained by the „workman' whilst at work. On extra premium-medical, surgical, and hospital expenses including the cost of transport to hospital for accidental employment injuries. Liability in respect of diseases mentioned under the Workmen's Compensation Act, on additional premium, which arise out of and in the course of employment.
Under Part Two, the insurer agrees to pay those sums that the insured is legally liable to pay as damages for worker injuries that are not compensable under Part One
◦ This coverage is needed in some states where workers compensation is not required for smaller employers
Employees who are injured must sue for damages
◦ Also, an employee may sue for injury caused by an accident at the job site, but the injury is not considered work related ◦ The coverage contains many exclusions including intentional bodily injury by the employer
Copyright © 2008 Pearson Addison-Wesley. All rights reserved.
26 -6
An Act to require employers to insure against their liability for personal injury to their employees; and for purposes connected with the matter aforesaid.
Except as otherwise provided by this Act, every employer carrying on any business shall insure, and maintain insurance, under one or more approved policies with an authorised insurer or insurers against liability for bodily injury or disease sustained by his employees, and arising out of and in the course of their employment in in that business, but except in so far as regulations otherwise provide not including injury or disease suffered or contracted outside (2)Regulations may provide that the amount for which an employer is required by this Act to insure and maintain insurance shall, either generally or in such cases or classes of case as may be prescribed by the regulations, be limited in such manner as may be so prescribed.
For the purposes of this Act the term “employee” means an individual who has entered into or works under a contract of service or apprenticeship with an employer whether by way of manual labour, clerical work or otherwise, whether such contract is expressed or implied, oral or in writing. (2)This Act shall not require an employer to insure— (a)in respect of an employee of whom the employer is the husband, wife, father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister; or (b)except as otherwise provided by regulations, in respect of employees not ordinarily resident
This Act shall not require any insurance to be effected by— (a)any such authority as is mentioned in subsection (2) below; or (b)any body corporate established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control; or (c)in relation to any such cases as may be specified in the regulations, any employer exempted by regulations.
An employer who on any day is not insured in accordance with this Act when required to be so shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding [F21level 4 on the standard scale]; and where an offence under this section committed by a corporation has been committed with the consent or connivance of, or facilitated by any neglect on the part of, any director, manager, secretary or other officer of the corporation, he, as well as the corporation shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Employee liability insurance covers business in event of an employee becoming sick or injuring themselves whilst at work. A successful claim against a company from an employee can often be very expensive so employer‟s liability insurance safe guards from this and prevents one incident from potentially bankrupting a business.
Employer‟s liability insurance will cover the cost needed to compensate employees who injury themselves or become sick as a result of work. This will also cover illnesses that occur after the employee has left work with the employer but may be claimed as it may be claimed as a result of the work. It does not cover motor accidents that may occur on an employee‟s journey to work so extra cover is needed for this.
Employers Liability Insurance provides with indemnity should an employee sustain an injury or disease during the course of his employment and seek compensation from his/her employer. As an example should an employee fall from a ladder and sustain serious injuries he could sue the business for whom he was working if he hadn't been supplied with the relevant safety equipment or had suitable training. He may be entitled to compensation which the business would be forced to pay if they don't have this cover in place.
LIABILITY EMPLOYERS : LIABILITY EMPLOYERS Employer‟s Liability Insurance as an extension to the Workmen‟s Compensation Insurance, it can however, be issued as a stand-alone policy as per the requirements of the customer. Employer‟s Liability Insurance indemnifies employers to pay compensation which they are legally required to pay under the Common Law for personal injury or death by accident arising out of and in the course of the employment
In the event of accidental Injury sustained by any employee of the insured caused during the period of insurance and arising out of and in the course of their employment by the insured in the course of the trade or business, and within the territorial limits, the Insurance Company will indemnify the insured in respect of all sums which they become legally liable to pay as compensation and claimant‟s costs and expenses, for such injury
Coverage A: Bodily Injury and Property Damage Liability
◦ The insurer agrees to pay on behalf of the insured all sums up to the policy limits that the insured is legally obligated to pay because of bodily injury or property damage
The bodily injury or property damage must be caused by an occurrence, I.e., an accident, including continuous or repeated exposure to substantially the same general harmful conditions Coverage does not apply when a loss is known or is apparent before the policy‟s inception date Coverage includes defense costs, and the insurer has the right to investigate a claim or suit and settle it at its discretion
◦ Coverage A contains a lengthy list of exclusions, including:
Expected or intended injuries or damages Contractual liability, with some exceptions Liquor liability Workers compensation and employers liability Pollution, with some exceptions Aircraft, auto, and watercraft, with some exceptions Mobile equipment War Damage to property owned, rented, or occupied by the insured Property damage to the insured‟s product or work Damage to impaired property that is not physically damaged Recall of products Personal and advertising injury Electronic data
◦ Coverage A includes coverage for fire legal liability
Covers fire damage to premises rented to the named insured or temporarily occupied by the named insured with the permission of the owner A separate limit of coverage applies Other damage to property rented by the insured is NOT covered
Coverage B: Personal and Advertising Liability
◦ The insurer agrees to pay those sums that the insured is legally liable to pay as damages because of personal and advertising injury ◦ The policy covers legal liability resulting from:
false arrest malicious prosecution wrongful eviction or entry slander violation of privacy
Coverage C: Medical Payments
◦ The insurer will cover the medical expenses of persons who are injured in an accident on the premises or on ways next to the premises, or as a result of the insured‟s operations
Expenses must be incurred within one year of the accident Payments are made without regard to legal liability
Supplementary Payments: Coverages A and B
◦ In addition to the policy limits, coverage includes:
All expenses incurred by the insurer Up to $250 for the cost of a bail bond Up to $250/day for actual loss of earnings by the insured
Employer‟s Liabilities For Compensation[Sec.3]: Employer‟s Liabilities For Compensation[Sec.3] An employer is liable to pay compensation to workman for- 1. Personal injury by accident- An employer is liable to pay compensation to workman if personal injury is caused to him by accident arising out of & in the course of his employment. 2. Occupational diseases- workers employed in certain occupations are exposed to certain diseases which are inherent in those occupation.
Employer is not Liable For Compensation: Employer is not Liable For Compensation (a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding three days; (b) in respect of any injury, not resulting in death or permanent total disablement, caused by an accident which is directly attributable to - (i) the workman having been at the time thereof under the influence of drink or drugs, or (ii) the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or (iii) the willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workmen 15
Workers compensation insurance provides medical care, cash benefits, survivor benefits, and rehabilitation services to workers who are injured or die from job-related accidents or disease
◦ Benefits are paid on the principle of liability without fault ◦ The workers compensation and employment liability policy contains three parts:
Part One: Workers compensation insurance Part Two: Employers liability insurance Part Three: Other-states insurance
Workmen's Compensation Insurance An employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. Such compensation is payable under the Workmen's Compensation Act. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as 'Employers' Liability Insurance'. For example, workmen's compensation insurance by United India Insurance Company Limited. This policy provides insurance against the following risks:Indemnity to insured against his liability as an „employer' to accidental injuries (including fatal) sustained by the „workman' whilst at work.
On extra premium-medical, surgical, and hospital expenses including the cost of transport to hospital for accidental employment injuries. Liability in respect of diseases mentioned under the Workmen's Compensation Act, on additional premium, which arise out of and in the course of employment
Workmen's Compensation Insurance An employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. Such compensation is payable under the Workmen's Compensation Act. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as 'Employers' Liability Insurance'. For example, workmen's compensation insurance by United India Insurance Company Limited. This policy provides insurance against the following risks:Indemnity to insured against his liability as an „employer' to accidental injuries (including fatal) sustained by the „workman' whilst at work. On extra premium-medical, surgical, and hospital expenses including the cost of transport to hospital for accidental employment injuries. Liability in respect of diseases mentioned under the Workmen's Compensation Act, on additional premium, which arise out of and in the course of employment.
Under Part Two, the insurer agrees to pay those sums that the insured is legally liable to pay as damages for worker injuries that are not compensable under Part One
◦ This coverage is needed in some states where workers compensation is not required for smaller employers
Employees who are injured must sue for damages
◦ Also, an employee may sue for injury caused by an accident at the job site, but the injury is not considered work related ◦ The coverage contains many exclusions including intentional bodily injury by the employer
Copyright © 2008 Pearson Addison-Wesley. All rights reserved.
26 -6
An Act to require employers to insure against their liability for personal injury to their employees; and for purposes connected with the matter aforesaid.
Except as otherwise provided by this Act, every employer carrying on any business shall insure, and maintain insurance, under one or more approved policies with an authorised insurer or insurers against liability for bodily injury or disease sustained by his employees, and arising out of and in the course of their employment in in that business, but except in so far as regulations otherwise provide not including injury or disease suffered or contracted outside (2)Regulations may provide that the amount for which an employer is required by this Act to insure and maintain insurance shall, either generally or in such cases or classes of case as may be prescribed by the regulations, be limited in such manner as may be so prescribed.
For the purposes of this Act the term “employee” means an individual who has entered into or works under a contract of service or apprenticeship with an employer whether by way of manual labour, clerical work or otherwise, whether such contract is expressed or implied, oral or in writing. (2)This Act shall not require an employer to insure— (a)in respect of an employee of whom the employer is the husband, wife, father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister; or (b)except as otherwise provided by regulations, in respect of employees not ordinarily resident
This Act shall not require any insurance to be effected by— (a)any such authority as is mentioned in subsection (2) below; or (b)any body corporate established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control; or (c)in relation to any such cases as may be specified in the regulations, any employer exempted by regulations.
An employer who on any day is not insured in accordance with this Act when required to be so shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding [F21level 4 on the standard scale]; and where an offence under this section committed by a corporation has been committed with the consent or connivance of, or facilitated by any neglect on the part of, any director, manager, secretary or other officer of the corporation, he, as well as the corporation shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Employee liability insurance covers business in event of an employee becoming sick or injuring themselves whilst at work. A successful claim against a company from an employee can often be very expensive so employer‟s liability insurance safe guards from this and prevents one incident from potentially bankrupting a business.
Employer‟s liability insurance will cover the cost needed to compensate employees who injury themselves or become sick as a result of work. This will also cover illnesses that occur after the employee has left work with the employer but may be claimed as it may be claimed as a result of the work. It does not cover motor accidents that may occur on an employee‟s journey to work so extra cover is needed for this.
Employers Liability Insurance provides with indemnity should an employee sustain an injury or disease during the course of his employment and seek compensation from his/her employer. As an example should an employee fall from a ladder and sustain serious injuries he could sue the business for whom he was working if he hadn't been supplied with the relevant safety equipment or had suitable training. He may be entitled to compensation which the business would be forced to pay if they don't have this cover in place.
LIABILITY EMPLOYERS : LIABILITY EMPLOYERS Employer‟s Liability Insurance as an extension to the Workmen‟s Compensation Insurance, it can however, be issued as a stand-alone policy as per the requirements of the customer. Employer‟s Liability Insurance indemnifies employers to pay compensation which they are legally required to pay under the Common Law for personal injury or death by accident arising out of and in the course of the employment
In the event of accidental Injury sustained by any employee of the insured caused during the period of insurance and arising out of and in the course of their employment by the insured in the course of the trade or business, and within the territorial limits, the Insurance Company will indemnify the insured in respect of all sums which they become legally liable to pay as compensation and claimant‟s costs and expenses, for such injury
Coverage A: Bodily Injury and Property Damage Liability
◦ The insurer agrees to pay on behalf of the insured all sums up to the policy limits that the insured is legally obligated to pay because of bodily injury or property damage
The bodily injury or property damage must be caused by an occurrence, I.e., an accident, including continuous or repeated exposure to substantially the same general harmful conditions Coverage does not apply when a loss is known or is apparent before the policy‟s inception date Coverage includes defense costs, and the insurer has the right to investigate a claim or suit and settle it at its discretion
◦ Coverage A contains a lengthy list of exclusions, including:
Expected or intended injuries or damages Contractual liability, with some exceptions Liquor liability Workers compensation and employers liability Pollution, with some exceptions Aircraft, auto, and watercraft, with some exceptions Mobile equipment War Damage to property owned, rented, or occupied by the insured Property damage to the insured‟s product or work Damage to impaired property that is not physically damaged Recall of products Personal and advertising injury Electronic data
◦ Coverage A includes coverage for fire legal liability
Covers fire damage to premises rented to the named insured or temporarily occupied by the named insured with the permission of the owner A separate limit of coverage applies Other damage to property rented by the insured is NOT covered
Coverage B: Personal and Advertising Liability
◦ The insurer agrees to pay those sums that the insured is legally liable to pay as damages because of personal and advertising injury ◦ The policy covers legal liability resulting from:
false arrest malicious prosecution wrongful eviction or entry slander violation of privacy
Coverage C: Medical Payments
◦ The insurer will cover the medical expenses of persons who are injured in an accident on the premises or on ways next to the premises, or as a result of the insured‟s operations
Expenses must be incurred within one year of the accident Payments are made without regard to legal liability
Supplementary Payments: Coverages A and B
◦ In addition to the policy limits, coverage includes:
All expenses incurred by the insurer Up to $250 for the cost of a bail bond Up to $250/day for actual loss of earnings by the insured
Employer‟s Liabilities For Compensation[Sec.3]: Employer‟s Liabilities For Compensation[Sec.3] An employer is liable to pay compensation to workman for- 1. Personal injury by accident- An employer is liable to pay compensation to workman if personal injury is caused to him by accident arising out of & in the course of his employment. 2. Occupational diseases- workers employed in certain occupations are exposed to certain diseases which are inherent in those occupation.
Employer is not Liable For Compensation: Employer is not Liable For Compensation (a) in respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding three days; (b) in respect of any injury, not resulting in death or permanent total disablement, caused by an accident which is directly attributable to - (i) the workman having been at the time thereof under the influence of drink or drugs, or (ii) the willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or (iii) the willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workmen 15
