Trade insurance can come in a variety of forms. Think of them as chamealeans, all are very similar, but each has a distinct shade depending on the day. Today we are discussing the difference between Employers' Liability Insurance and Workers' Compensation. Are they the same thing? What are the differences? Is this just American vs British slang?
When one of your employees gets ill or manages to get injured, they may need some time off work. On rarer occasions, they may have a severe accident and require a long lay-off. Sometimes not returning to work at all.
If they manage to get injured or ill because of the work you have set them up, they may be owed compensation. This is because the accident wouldn't have happened if it wasn't for the job you had set for them.
In this scenario, an employee could claim against you for any lost earnings, medical expenses or bills. If they take it one step further and take you to court, you could also be tasked with paying for their legal fees.
As a trade business owner, if you have any employees, you are required to hold a sufficient level of Employers' Liability Insurance under UK law. Without this, you could face a fine of up to £2,500 a day from local authorities. What's more, if you are found not to hold this insurance and have staff members, your fine could be backdated, landing you with one heck of a bill!
This insurance is designed to keep you and your employees safe while working for you. If they cause some type of damage to clients properly, then you will be covered. You are protected if they also manage to injure themselves or a public member during work time. This insurance is your safety net in case a compensation claim is related to one of your employees.
At Rhino Trade Insurance, our policy is an extremely popular add-on to our Public Liability Insurance. For as little as £6.07 a month, you can get excellent cover for your trade business.
Want to know more? Read our dedicated article covering Employers' Liability Insurance.
Here's the catch, you won't find anything on the market called 'Workers Compensation Insurance'. This is simply another search term for Employers' Liability Insurance, and that's why there is sometimes confusion on the matter.
If an accident or illness happens to an employee whilst, on a job, you will be covered for any compensation owed under Employers' Liability Insurance. The worker will receive compensation, yes, but the insurance itself isn't called this.
As we mentioned above, Employers' Liability Insurance will protect you from any successful claim from an accident, injury, illness, legal fees and damages.
One final point is that Workers' Compensation can also be misconstrued with Personal Accident Insurance.
Policies that protect you from accident and sickness will usually be taken out by a self-employed tradesperson looking to protect themselves in case they cannot work for an extended period of time and need financial cover to pay for things like bills and their income.
Let's look at some Employers' Liability Insurance examples to get an idea of what we are talking about.
Electrician example:
Big Dave runs a small electrical business in Stoke. He has four staff members regularly fixing the power of the local area. One day, Steve gets into trouble and smashes a customer's window (by accident, of course). He didn't lose it. From this, the client claims on your Employers' Liability Insurance to cover the cost of any repairs. Bish, bash, bosh, your claim is triumphant, and you don't have to lose any sleep. But just remind Steve to be careful next time.
Cleaner example:
Likewise, Amy runs her cleaning business in London, managing several employees who clean the city's offices. One day, Gill trips over a Hoover wire and sprains her ankle causing her to miss a few weeks of work. Gill lodges a claim against her employer and wins damages. Amy's Emoloyers' Liability Insurance pays out any compensation owed to Gill, and no one ends up out of pocket.
For any tradesperson looking to insure their employees, look no further than Rhino Trade Insurance. Our policies are trusted by thousands of tradespeople across the UK. We cover businesses of all sizes and have cover that comes as a standard of £5 million (protecting you against any statutory requirements).
Why not give our wonderful team a call now on 0116 243 7904 or get a quick quote online? Our policies are 40% cheaper than most competitors, and we also have a big personality. Just check out our social media channels!
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The question that often arises is: Is Public Liability Insurance a legal requirement for tradesmen in the UK?
Llike any trade, garden gate installation comes with its own set of risks and challenges. This is where insurance comes in, providing you with the peace of mind and security you need to focus on what you do best.
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