Liability Insurance

Archive for November, 2010

Under the new Federal Employers Liability Act, all companies are required by law to be liable if an employee sustains injury, illness or death while on the job. The company, through its company insurance, pays for any medical care that might be needed and often will pay you while the staff member is recovering.

Under an existing employment contract, medical costs can be a huge burden on employees and employers alike. By requiring employers to have business insurance, the company will not be liable should an employee contract an illness, get hurt, or dies while on the job. Instead, the insurance company will pay the employee directly.

Employers Liability Insurance is generally purchased through an Insurance broker and not the organization which underwrites the risk.

There are many dangerous jobs in the world and if not for employers liability insurance, many companies would go bankrupt every day. Smaller companies would be the most affected as they might not have a large company account to dip into. Thankfully, even the smallest companies have liability insurance to protect themselves in the event of an employee’s liability claim and make sure their employees are adequately covered.
The employer makes monthly payments to their EmployersLiability insurance provider in a similar manner as employeesmake payments to their own insurance providers. The price the companies pay for this insurance varies depending on the sizeof the organization, how hazardous the job is, and how manystaff are on payroll.

In addition to physical ailments, employers also are liablefor all types of harassment. This could be based on sex, race,religion, and many other factors. If the employee feels theyare being harassed or discriminated against for any reason,they might file complaints and an investigation will occur.Depending on the circumstances and who is doing thediscriminating and harassing, the employer may be heldaccountable. Many employers are implementing employmentcontracts that help to eliminate harassment by having a zerotolerance policy so they aren’t deemed to be liable.

There are many different organizations that specialize ininsuring companies of all sizes when it comes to liability.Depending on the company, they might even offer special packagedeals or discounts.

Employers are liable for most activities the employeesengage in while at work. This is the reason many companies haveemployers liability insurance for safety and the treatment offellow coworkers which is often part of an employment contract.Supervisors and owners of the company are all expected to abideby the rules established for that company. By following therules, nobody is in fear of injuries, medical issues, or lawsuits.