The consequences of a workplace accident do not stay within the workplace
For an employer, a workplace accident or occupational disease does not mean merely the loss of an employee or an operational disruption.
Depending on the nature of the incident, the compensation and recourse claims brought by the employee, the employee's dependants or the relevant social security institution can place a significant financial burden on the employer.
Employers Liability Insurance ensures that the employer's legal liability towards its employees is assessed within the scope, limits and terms set out in the policy.
Which liabilities may arise?
Following a workplace accident or occupational disease at the workplace, the following may become the subject of the employer's liability:
- Compensation claimed by the employee
- Claims brought by the dependants in the event of the employee's death
- Liabilities that exceed or fall outside the amounts met by the social security system
- Recourse claims that the social security institution may direct against the employer
- Litigation and defence costs that may be assessed under the policy
The scope of the cover, its limits and its exclusions are determined by the terms of the policy issued.
Liability does not arise only in serious accidents
An employer's liability is not limited to incidents that result in death or serious injury.
The safety of the working environment, the equipment used, the way the work is carried out, the training provided, the protective measures in place and the organisation of the work may all come under review following an incident.
For this reason, the same workplace accident can give rise to different legal and financial consequences in different fields of activity.
Every workplace has a different liability profile
An office, a restaurant, a factory, a construction site, a workshop or a warehouse does not carry the same employee risk.
The assessment takes the following factors into account together:
- The nature of the business
- The number of employees
- The nature of the work performed
- The machinery and equipment used
- The working environment
- Field or construction site activities
- Past workplace accidents
- The liability limit requested
Employers Liability Insurance is therefore structured not only according to the number of employees, but according to the actual working conditions of the workplace.
The link between a workplace accident and financial liability
The physical consequences of a workplace accident can emerge within a few seconds.
For the employer, however, the legal and financial consequences can continue for far longer.
For this reason, the central issue in Employers Liability Insurance is not merely that an accident has occurred, but the accurate assessment of the liability that accident may create for the employer.