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Employers Liability Insurance

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How much does employers liability cost?

The cost of employers liability insurance in New Zealand typically averages between $10 – $15 per month. This cost is determined by various factors, including your industry, the hazards involved and number of employees.

What is the average cost of employers liability insurance? 

The average cost of Employers Liability Insurance in New Zealand is around $10 to $15 per month, equating to roughly $150 per year.

However, this cost can scale up depending on the nature and size of your business. Companies with a larger workforce or those involved in more physically demanding industries often face higher premiums due to increased potential risks.

Understanding employers liability insurance cost factors

Several factors can influence the cost of your Employers Liability Insurance. Here are three of the most significant:

Is your industry at higher risk of employers liability insurance claims?

Some businesses inherently carry more risks due to the nature of their work. For instance, construction companies may face higher premiums because their workers engage in high-risk activities regularly. The higher the potential risk, the higher the insurance cost.

What is the impact of number of employees on employers liability cover?

As the number of employees in your company increases, so does your liability risk. More employees mean more potential for workplace accidents, illnesses, or injuries, which in turn, raises the potential for claims against your business.

How does your claims history alter your employees liability insurance cost?

If your business has a history of numerous claims, your insurance cost is likely to be higher. This is because past claims are considered indicative of future risks. Therefore, a clean claims record can significantly help in reducing your premiums.

Employers Liability Provides Cost-Effective Protection for Your Business

Employers Liability Insurance is a crucial investment for any business. Here’s how it provides cost-effective protection for your organization:

Employers liability insurance is a financial safeguard

Employers Liability Insurance protects your business from potentially crippling financial losses that can occur if an employee gets injured or ill because of their work and decides to sue your company. The cost of legal fees, medical bills, and potential compensation can be substantial, threatening the financial stability of your business. Employers liability insurance covers these costs, providing a financial safety net.

Reputation protection 

When a company handles employee claims well, it demonstrates that it cares for its workforce. Such actions can improve the company’s reputation, which can lead to increased loyalty from current employees and attract potential ones. Employers Liability Insurance ensures you can promptly and adequately respond to any claims, thus protecting your reputation.

Employers liability legal or compliance requirements

In some cases, Employers Liability Insurance may be required by contract terms with clients or suppliers. Having this insurance ensures that your business is always compliant with these requirements, avoiding potential legal issues and penalties.

It’s crucial to have employers liability coverage if your business: 

  • Has employees
  • Involves physical labour
  • Is contractually obligated to have it

How Can You Save on Employers Liability Insurance

While Employers Liability Insurance is a necessary expense, there are ways to potentially reduce its cost:

Improve Workplace Safety

Implementing comprehensive safety measures in your workplace can significantly reduce the risk of accidents, illnesses, and subsequent claims. Regular safety training, proper equipment maintenance, and a strong emphasis on safety culture can demonstrate to insurers that your business is proactive in mitigating risks, potentially leading to lower premiums.

Bundle your employers liability insurance policy

Often, insurers will offer discounts for businesses that hold multiple policies with them. Consider bundling your employers liability insurance with other business insurance policies, such as professional indemnity or public liability insurance, to benefit from potential savings.

Use an Insurance Broker 

Insurance brokers like us at Gerrards have extensive knowledge of the insurance market and can help find you the best coverage at competitive prices on your employers liability insurance. We can negotiate on your behalf with insurance companies and work to get you the most favourable terms. This can lead to significant cost savings without sacrificing the extent and quality of your coverage.

Choose the Right Excess

The excess is the amount your business agrees to pay out-of-pocket before your insurance coverage kicks in. Higher excesses usually result in lower premiums. However, it’s crucial to ensure your business can afford to pay the chosen deductible in the event of a claim.

Top professions that need employers liability

In New Zealand, emploters liability insurance can provide comprehensive and cost effective protection for many professions.

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