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The Need For Employee Liability Insurance

Liability insurance is vital to many companies and every effort should be put into finding the best plans that will cover them adequately. Of course, every organisation should be responsible for their employees, but they should also cover themselves in the event that an incident occurs where the business could be jeopardised by claims. Whether this has come about through injury or another form of illness like a disease, it could spell the end of an entire business if they are found to be the cause. Employee liability insurance should however be able to absorb this allowing a business to continue to function.

The industry standard level of insurance is £10 million, so any insurance companies that are worth investing in should start from this point. It should help pay for both compensation and the legal expenses if the opposition win. Technically £5 million is the absolute minimum that a company can fain cover for in this instance, but it is always good to have a large margin within which to work.

It must be stressed that it is the employee’s legal right to make a claim, but there are some instances in which insurance is not required, which largely depends on the type of company in question. If a business has no people working for it, for instance, then employee insurance of this nature is not necessarily required. Unlike public liability insurance, however, this form of insurance is a legal requirement for those who hope to have employees.

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