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Employers Liability

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Who needs employers liability?

Employers Liability Insurance

Employers Liability Insurance plays a crucial role in providing financial protection for businesses against claims made by employees who suffer an injury or illness while at work. While it is not mandated by law in New Zealand, understanding whether your business needs this insurance and the implications of having or not having it can be vital.

Do I need it?

Evaluating the need for Employers Liability Insurance requires a careful assessment of your business operations and potential risks.

Potential for Accidents

If your workplace involves manual labor, machinery, or any potential hazards, the risk of accidents increases, making Employers Liability Insurance more relevant.

Nature of Work

Businesses involved in industries with higher incidences of workplace injuries or illnesses may find this insurance indispensable.

Financial Security

Employers Liability Insurance can provide a financial safety net, ensuring that your business can cope with potential compensation claims without significant financial strain.

What is employers liability insurance?

  • Coverage: This insurance covers legal and compensation costs that arise when an employee holds the employer responsible for their injury or illness. It includes injuries that are gradual and occur over time, such as repetitive strain injuries, as well as illnesses resulting from exposure to workplace conditions.
  • Exclusions: There are specific exclusions, and it’s crucial to understand these to know what is not covered. Typically, it doesn’t cover fines, punitive damages, or any liabilities arising from intentional acts.
  • Limits and Deductibles: Policies will have limits on how much they pay out and deductibles that the business must pay towards a claim. It’s important to choose limits that adequately protect your business.

How Can You Do It Right?

  • Assess Your Risks: Understand the nature of your work and the potential risks involved to make an informed decision.
  • Choose Adequate Limits: Ensure your policy limits are sufficient to cover potential claims.
  • Read the Policy Thoroughly: Understand the terms, conditions, and exclusions of your policy.
  • Regular Reviews: Continually assess your coverage as your business evolves and risks change.
  • Seek Professional Advice: Consult with an insurance broker to help navigate the complexities of Employers Liability Insurance and find a policy that suits your needs.

Disadvantages/Advantages or Pros/Cons

  • Risk Management: It helps in managing the financial risks associated with running a business, ensuring that unexpected events do not lead to financial ruin.
  • Legal Compliance: Some industries and contracts require businesses to have public liability insurance, so having it ensures that you are in compliance with these requirements.
  • Peace of Mind: Knowing that you are covered in the event of an accident gives you peace of mind, allowing you to focus on running your business.
  • Cost: While public liability insurance is essential, it is an additional cost that businesses need to budget for.
  • Policy Limits: If the cost of a claim exceeds your policy limit, your business will be responsible for paying the difference.
  • Complexity: Understanding the terms and conditions of your insurance policy can be complex, and it’s vital to ensure that you have the right coverage for your specific needs.

Common Misunderstandings

  • ACC Covers Everything: Many employers believe that ACC covers all workplace injuries, but this is not the case. Employers Liability Insurance covers claims not handled by ACC.
  • It’s Only for Large Businesses: Businesses of all sizes can benefit from this insurance, especially those in high-risk industries.
  • It’s Too Expensive: While premiums can be significant, the financial protection it offers can far outweigh the costs, especially in the event of a substantial claim.

How can Gerrards help?

Gerrards, as a specialist in business insurance in New Zealand, offers:

  1. Expertise: Our team has vast knowledge and experience in understanding the unique insurance needs of businesses.
  2. Tailored Solutions: We can help customise a policy that fits the specific requirements and risks of your business.
  3. Guidance: From understanding policy terms to assisting with claims, Gerrards is committed to guiding businesses every step of the way.

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