What does employers' liability insurance cover?

Employers’ liability insurance can cover compensation payments and legal costs if an employee sues their employer or ex-employer for a work-related illness or injury. The compensation amount may take into account things like medical costs and lost income.

Employers’ liability insurance is designed to cover the costs if an employee claims compensation for illness or injury that they believe has been caused by their work.

For example, an office worker is badly injured when they trip over a cable running across the floor. A former employee is diagnosed with an illness related to asbestos exposure during their work. A builder is electrocuted by a piece of faulty electrical equipment supplied by their employer.

In each case, a compensation claim is brought against the employer or former employer. The court can order the employer to pay compensation for injury, costs and other damages. The compensation figure may take into account things like medical care and lost income.

Employers’ liability insurance can cover the compensation payment and the legal costs, up to the limit of the policy.

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