In the event of an employee getting hurt or falling ill at work, they may require time off.
In severe instances, a return to work may not be feasible.
If the incident is work-related, they may seek compensation for lost income, expenses, and potentially incur legal fees if they decide to file a lawsuit.
Is worker’s compensation the same as accident and sickness insurance?
Accident and sickness insurance, taken by individuals, covers income loss due to illness, injury, or job loss, excluding work-related incidents.
Who pays workers’ compensation?
Employer pays worker’s compensation for work-related illnesses or accidents, covered by employers’ liability insurance, which also handles claims, compensation, and legal costs.
What happens if you don’t have employers’ liability insurance?
Employers must have liability coverage policy or face daily fines of up to £2,500 and fines for not displaying the certificate.
Without insurance, the business covers employee compensation claims, which can be substantial.
How much cover do you need and how much will it cost?
Employers must have £5 million minimum cover, with many policies offering up to £10 million.
Costs depend on employee count and job type.
Do I Need Both?
Workers Compensation Insurance’ is not a separate product; it’s the same as ‘Employers’ Liability coverage policy.
There’s often confusion about the terminology.
This insurance covers compensation for employee accidents, illnesses, legal fees, and damages.
T Bag is an insurance expert with a degree in actuarial science from the University of Hartford. He has over 10 years of experience in risk management, product development, and pricing. He is a certified actuary and a member of the American Academy of Actuaries. He is passionate about helping clients find the best insurance solutions for their needs and goals. He is looking for new opportunities in the insurance field.