When you employ people, it is a good idea for you to have employer's liability insurance. This is insurance that protects you against any liabilities that may result from disease, injury, or fatality to your employees that may result from the conditions of the workplace or practices occurring within the workplace. In some areas, having employers liability is mandatory for businesses that have employees.
Although there is workers compensation, the laws are not uniform from state-to-state and there are certain types of employees that are not covered under workers compensation. In other words, it is possible that an individual in a certain industry be injured on the job and then not covered under workers compensation.
Because of the holes in workers compensation coverage, employers liability insurance is very important. It can ensure that an employee who may sue for damages done to them through no fault of their own is compensated for their injuries. When they are injured, they are out of an income, so it is important for them to be able to exercise their legal right of seeking damages. It is equally important that you are able to ensure you are financially protected against that legal right.
The types of businesses that are excluded from workers compensation laws are sole proprietors, executive officers in some states, partners, domestic workers, those in the agricultural industry, and those who work on an irregular basis. If you fall into the category of a partnership or a sole proprietor, yet you do employ individuals to some capacity, then you want to have employers liability insurance.
If you fall into either one of these categories, then chances are you have a rather small operation. This means you cannot afford a large lawsuit from an employee who was injured on the job. This can be an alternative to workers compensation since you are not required to carry it, depending upon your exact business type.
Then again, there are some employees who can be voluntarily covered, but this is not likely. You want to be able to protect yourself against extensive lawsuits. This is especially true if the accident that occurred caused the death of the employee. The family could file a suit against you for such things as lost income of a breadwinner and the pain and suffering that they have incurred.
Anatomy of a Claim
When an employee is injured due to employer negligence, they will receive medical treatment. Because their own health insurance will most likely not pay for the injury due to it not being the employee's fault, the employee will have to file a claim against you so that they can get their medical expenses paid for. This more or less works the same as if a customer were injured.
The ideal thing for you to do when you know an employee accident has taken place is to go ahead and call the insurance company and inform them of the accident so that they can start getting paperwork ready. They can already have the information in front of them by having it in their computer. When the employers liability claim actually happens, everything is ready to go. This speeds up the process so that it can successfully be put in the past.
Don't be surprised if you have more than one claim. Many businesses have to deal with multiple claims. This is especially true of those that have to utilize heavy machinery. Any time there is some sort of hazard that exists, the risk of injury exists as well. That is why you have to make sure you are adequately protected.