Everything you need to know to escape employee lawsuits

As more and more employees get aware of their rights, the number of discrimination and harassment accusations against employers has also escalated. To protect themselves from these unjust lawsuits, many companies rely on employer’s liability insurance in NZ. Let’s take a look at how this works.

What does this insurance cover?

Employer’s liability insurance covers the compensation amount and legal costs if an employee claims compensation for an injury or illness which occurred in the course of their employment.

What does this insurance not cover?

Employer’s liability insurance doesn’t cover things such as emotional stress (unless it’s the direct result of a job-related injury), aging-related issues, non-traumatic hernias etc. 

How much does this insurance costs?

The nature of a business and the number of employees are amongst some factors that determine the premium amount. The riskier a business is, the more the premium will be.

Where to get this insurance from?

Companies can obtain an employer’s liability insurance through insurance brokers in New Zealand. Before issuing the policy, the insurer will evaluate if there are any pre-existing workplace liabilities. Based on the evaluation, the insurer will propose some mandatory changes to the company.

Accidents are uncertain. Anything can happen to anyone. This uncertainty is what makes acquiring an employer’s liability insurance in NZ crucial to business owners. In case of any unfortunate event, if an employee claims to be compensated for the damages inflicted upon them, genuinely or not, the insurance will protect the company’s reputation as well as save it from any financial loss. 

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Created on Nov 7th 2017 00:30. Viewed 811 times.

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