All businesses are required to have employers liability (EL) insurance. This particular business insurance covers compensation costs and any legal fees incurred if an employee falls ill or gets injured at their place of work. Furthermore, employer liability insurance will also protect the employer if the employee dies at their place of work. There are few exceptions when it comes to obtaining this type of insurance; one employee operations (sole proprietor) and businesses that employ immediate families are not obligated to secure this type of liability insurance. However, if you employ anyone other yourself or immediate family members, it is mandatory for you purchase employers liability insurance by law.

USA, Britain and many other countries force a policy of mandatory employers liability insurance acquisition.

Your insurance provider is obligated to all the costs incurred if an accident happens at your business and your employee or employees decide to take legal action. Your insurance provider will cover your legal fees, medical fees, and any other fee related to the legal proceedings.

When covered by an employers liability insurance, part or whole of the costs of a claim may be covered for you. This depends upon the factor as to who was responsible for the accident in the first place. If it was your employee himself, you don’t have to worry about the costs any further.

If you don’t acquire employers liability insurance, you are vulnerable to a legal monetary penalty for each day that your employees were not provided the insurance. Not only that, health and safety authorities might close down your business forcefully. This is certainly not the kind of risk any businessman would take.

In addition, your liability insurance certificate has to be displayed and accessible in your place of business. Your employees have to able to see it and access it. Some other highly visible places to display a copy of your certificate is the information board of your building, or have an electronic scan of the certificate on your website.

Employers liability insurance (EL Insurance) covers only your employees. It doesn’t cover people outside your organization. So if you want to cover the costs of general public injuries (or accidents) occurring in your business premises, you would require a public liability insurance.

Employers Liability Insurance only covers employees falling ill, getting injured or death. It doesn’t cover you in case you face claims like employee termination based on faulty judgment or sexual harassment etc.

Your insurer must be authorized, otherwise you will be breaking the law. Also, you would want to compare the premium costs of different insurers so that you get yourself a decent deal.

The beauty of EL insurance is that it protects you from having to directly pay costs in the event an employee is injured on the job. It protects both you, by being able to cover any costs without going out of business, and the employee, who may be unable to work temporarily.

About the author: Ben Ashfalk knows a lot about employers liability insurance and liability insurance coverage.

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