Employees Protected By Employers Liability Insurance
Everyone knows that machinists, construction workers, truckers and auto mechanics work in industries that carry significant workplace risks. But what about telephone receptionists, secretaries, graphic designers or database administrators? What about florists, caterers, wedding planners, hotel chefs? The truth is, every workplace carries risks, which is the reason behind employers liability insurance.
Employer's liability insurance is a kind of coverage through which employers are protected from liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.
For instance, it's to be expected that an interstate trucker driving a big rig with a heavy load could face risks unlike other workers. But what about a file clerk who gets hit when wrestling with an unwieldy metal file drawer that's been filled with too many folders? That, too, is a workplace liability.
And it's for these expected and unexpected cases of risk that employer's liability insurance was created.
Employer's liability insurance comes under a classification called "risk financing." Today many large corporations, and even small- or medium-sized companies, employ people to monitor the business for potential liability and manage its insurance policies. These employees are known as risk managers.
The practice began when individuals or companies facing common risks banded together to create a fund to compensate any member that suffered loss. For instance, the famous insurance firm Lloyd's of London was founded by a group of shipping company owners to repay its fund subscribers when ships were lost at sea. Today there are insurance carriers, including Lloyd's, who specialize in liability insurance.
In employer's liability insurance, the business owner pays a premium to the insurance carrier to be protected against an employee's loss due to workplace injury or accident. This is called a "third-party claim" in the insurance industry, since the claimant is legally not a party to the insurance contract. Usually an employee injured on the job seeks to get back any uncovered medical expenses, lost wages or other economic losses as the result of a workplace injury or illness caused by working conditions.
However, when a claim is made, the insurance carrier may choose to defend both the insured and itself. A legal battle might ensue if a liability were more complex and severe than the simple example outlined above.
Certain businesses, such as transportation companies, factories, building contractors, various types of professionals and factories often are required to have employer's liability insurance. That's because there's an inherent risk in their type of business that could result in injury, so the local or state government seeks to protect employees from the outset. - 23211
Employer's liability insurance is a kind of coverage through which employers are protected from liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.
For instance, it's to be expected that an interstate trucker driving a big rig with a heavy load could face risks unlike other workers. But what about a file clerk who gets hit when wrestling with an unwieldy metal file drawer that's been filled with too many folders? That, too, is a workplace liability.
And it's for these expected and unexpected cases of risk that employer's liability insurance was created.
Employer's liability insurance comes under a classification called "risk financing." Today many large corporations, and even small- or medium-sized companies, employ people to monitor the business for potential liability and manage its insurance policies. These employees are known as risk managers.
The practice began when individuals or companies facing common risks banded together to create a fund to compensate any member that suffered loss. For instance, the famous insurance firm Lloyd's of London was founded by a group of shipping company owners to repay its fund subscribers when ships were lost at sea. Today there are insurance carriers, including Lloyd's, who specialize in liability insurance.
In employer's liability insurance, the business owner pays a premium to the insurance carrier to be protected against an employee's loss due to workplace injury or accident. This is called a "third-party claim" in the insurance industry, since the claimant is legally not a party to the insurance contract. Usually an employee injured on the job seeks to get back any uncovered medical expenses, lost wages or other economic losses as the result of a workplace injury or illness caused by working conditions.
However, when a claim is made, the insurance carrier may choose to defend both the insured and itself. A legal battle might ensue if a liability were more complex and severe than the simple example outlined above.
Certain businesses, such as transportation companies, factories, building contractors, various types of professionals and factories often are required to have employer's liability insurance. That's because there's an inherent risk in their type of business that could result in injury, so the local or state government seeks to protect employees from the outset. - 23211
About the Author:
To protect your company you may need employee liability insurance as well as directors and officers liability insurance. Both protect employees, just in different ways.
posted by X - Men @ 3:27 AM
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