Starting your enterprise can be fruitful and exciting, but it is also a challenging and risky endeavor. It can result in many unexpected costs, particularly if your company employs anyone rather than yourself – that is, full-time and part-time employees, unpaid interns, volunteers, and agency temps. Obtaining employers’ liability insurance is a great way of protecting yourself and the business from unforeseen costs that result from the management of employees in the company. The following are the benefits associated with carrying employers’ liability insurance.
Protects Against Financial Losses
Liability insurance can safeguard the employer against claims made by workers who have been injured in the course of their duties. For instance, an employee can slip and fall on slippery floors, get injured by machinery or equipment, or contract a disease due to exposure to chemicals or certain environments. If the injured employee sues the company for damages and medical costs, liability insurance can help cover the medical expenses, legal fees, and compensation costs.
If you don’t have this insurance coverage, you will be required to pay for the damages using business finances, and this can significantly affect your operations. The cost of acquiring coverage is minimal compared to the losses that you may incur for not being insured. You can even get an inexpensive coverage by comparing various business insurance quotes from different companies. Settle on a reputable insurer that offers the right policy at a reasonable price.
Covers Errors in Benefits Administration
Most employers offer benefits such as health insurance, disability insurance, paid time off, paid sick days, and retirement benefits among others. A benefits package can help attract the right talent to your company and retain the current employees. However, failure to administer it correctly or within the stipulated period can cause significant problems for the business. Even the smallest clerical errors or omissions can have the company sued by an employee.
Employers’ liability insurance covers cases where delayed enrollment in the benefits plan causes a worker to incur out-of-pocket expenses that would have been covered by the insurance. It also insures against claims made by employees for the omission of benefits that they are entitled. Lawsuits regarding benefits are not provided for under the workers’ compensation insurance, but your employers’ liability coverage can pay for the associated fees and damages.
Protects Against Third Party Countersuits
Third party countersuits can hurt your business if you don’t have the right insurance coverage for protection. For instance, a worker may get injured while using a forklift and file a suit the business for medical fees and damages. In this case, the workers’ compensation insurance can cover the expenses. However, the employee can go ahead and also sue the forklift’s manufacturer for malfunction. What if the manufacturer counter-sues the business citing the failure as due to poor maintenance? In such a case, the workers’ compensation coverage will not help, and the company will incur additional costs in the countersuit. However, employers’ liability can insure the business against such lawsuits.
Promotes Employees’ Productivity
Employers’ liability insurance insures the business against risks that revolve around employees, their health and safety, and benefits. Employees have peace of mind when they know that they will be compensated if they are injured or are taken ill in the course of their work. Also, if there are any discrepancies in their benefits plan, the insurance will cover the costs and compensate them adequately. Such assurance boosts the morale of workers, improves their efficiency, and promotes productivity. Also, since the insurance covers any unforeseen costs, disagreements between you and the employees are minimized, and this helps to maintain a healthy employer-employee relationship.
Obtaining employers’ liability insurance is essential for every business owner. It ensures the business against risks that may not be covered under the workers’ comp or general liability insurance policies. You can seek the services of an expert if you are not sure of the ideal amount of coverage for your enterprise.