The Workmen’s Compensation Act 1987 makes it compulsory for any Employers of labour to set aside funds to compensate any worker who may sustain injury at the work place whether or not the Employer is to blame.
An insurance policy that protects Employers from liabilities arising from disease, fatality, or injury to employees in the course of employment or resulting from workplace conditions or practices. Some jurisdictions make it compulsory for Employers to buy such insurance.
Employers’ liability insurance protects your business against the cost of compensation claims made in the event of an employee injury or work-related illness.
As an Employer, you are responsible for the health and safety of your employees while they are at work. If an employee suffers an injury or falls ill, you may be held liable. It could be something as simple as an injury caused by slipping on a wet floor, or an employee contracting a disease because of something you were unaware of.
Employers’ liability insurance cannot prevent accidents from happening, but in the event that they do, it will cover the legal and compensation expenses arising from a claim.
What does employers’ liability insurance cover?
Your business will be covered in the event of a claim from an employee about an injury or illness suffered as a direct result of their work or in the course of work. For instance, if an employee trips and falls over a trailing computer wire and damages their arm, the employer is liable.
Employers’ liability will cover the cost of settling
and defending the claim, including compensation pay-outs and legal fees should
the case go to Court due to a breach of a regulation or statute.
Workmen’s Compensation vs Employers Liability Insurance: Know the Difference
These laws are instituted to protect the employee and the employer in the event of a workplace accident. It is the employer’s job to provide a safe work environment. When this doesn’t happen, an employee may bring a personal injury claim against the employer.
This is where Employers Liability Insurance comes in. Lack of planning can leave your business bankrupt.
But what is the difference between employer’s liability insurance vs worker’s compensation?
Worker’s compensation is a mandated coverage for employees that incur work-related injuries or illnesses. Employees can file a claim while at work, traveling for business, or attending a work function. Not all employers are required to have worker’s compensation insurance. This depends on the number and type of employees and the work performed.
Typically, an employee qualifies for worker’s compensation unless:
- The injury is sustained while under the influence of drugs or alcohol
- Injury occurs under violation of company policy
- The employee is injured during criminal activity
- Injuries are self-inflicted
- The employee was not on the job
Employees are not required to prove that the employer was at fault in order to receive compensation for injury or illness. They need only to have been an employee and sustained a work-related injury.
Worker’s compensation covers an employee that was injured or became ill while on the job. This includes things like falling off a ladder, carpal tunnel syndrome and hurting your back while lifting boxes. Benefits cover all related medical expenses lost wages, disability, and rehabilitation.
When an injury or illness is fatal, the spouse and children of the employee are eligible to receive benefits for lost wages and funeral costs. The amount paid out is limited by law in Ghana. Worker’s compensation only pays for claims related to a tangible injury.