Employers’ Liability Insurance – A Must Have for Employers

Employers are responsible for the safety of their employees. It is the duty of the employer to protect employees from work-related risks and this is where employers’ liability insurance can help. It provides coverage for the claims made by an employee against the employer in case of an injury or illness while doing his job. Employers’ liability insurance is an essential cover for businesses regardless of their size – small, medium or large.

This article discusses the benefits of employers’ liability insurance to the employer and the employee, and urges business owners to opt for it.

Benefits to employees

Employers’ liability insurance guarantees financial compensation to employees when they get into job related injuries or illnesses at workplace for which the employer is liable. This insurance covers cost of medical expenses and lost wages. It also covers the expenses involved in litigation and compensation up to the policy amount.

If an employee dies or gets permanent physical disabilities, this insurance offers coverage for the cost of legal procedures and also pays the necessary compensation.

Having been covered under this policy, employees feel secure and are at ease, and will be more focused and therefore be more productive. This leads to improvement in the profitability of businesses in the long-term.

Benefits to employers

Employers are likely to face liabilities because of employees’ claim for compensation for injury or illness at employment. This comes in the form of litigation and resultant costs including payment to the attorney, going to court of law, and above all needless anxiety. Employers’ liability insurance covers these expenses. The insurance covers financial loss caused as a result of payment of compensation as well.

Purchasing this insurance will enable business owners to run their business without having to worry of the probable consequence of business operations.

The amount of insurance cover you need depends on the business type, size, and the number of employees, location and risk factors.

Get the right insurance quotes from reputed brokerage agencies, according to your business’ needs.

Reputed brokerage agencies are known for their expertise in the area and excellent grasp of the liabilities your business is likely to encounter. To find such agencies, research thoroughly online.

Employers’ liability insurance helps both the parties – employers and employees. Thus, the parties involved are equally benefited. Although the unfortunate situations wherein this insurance comes to rescue the parties cannot be predicted and ruled out, it helps them financially find a way out.

Do Childcare Facilities Need Employment Practices Liability Insurance?

Protection for You

You’ve got a state-of-the-art child daycare built around a warm, clean and safe atmosphere. The teachers are handpicked professionals that give kids undivided attention, stimulation and fun learning. Children are happy. Staff is fulfilled. Parents are proud. What could go wrong?

Unfortunately, a lot of things – that your general business liability insurance does not cover.

Childcare Claim Examples that Really Occurred!

• Third Party Liability: After a Montessori School stated they could not admit a child due to licensed limited capacity, the parents sued for racial discrimination. The parents insisted that the school had a non-admission policy for African American children and mentioned the fact that the student body did not contain even one African American. Defense and Settlement costs totaled: $67,000.

• Internet / Email Liability: An administrative assistant for a childcare facility sent an email to all employees instead of her intended single recipient. The email contained an embarrassing inappropriate joke. The center’s director instructed the employee to send a subsequent apology email to everyone. Just 2 months later, an employee that was laid off due to company downsizing, sued because of a hostile work environment and cited the inappropriate email as proof of an atmosphere that did not respect her religious principles. The facility was discomfited and uninterested in having this lawsuit revealed to the parents.

• Retaliation: An Indian childcare employee objected to the racial insults directed at him by some of his fellow workers. As a result, the owner assigned him to another room where there was less of a staff presence. The new situation warranted less work-time and therefore his hours were reduced. The slighted employee sued the childcare center for discrimination and retaliation for relating the discrimination. Defense and Settlement costs totaled: $125,000.

• Wage and Hour: A Non-Exempt head teacher was covertly tracking hours as she worked the overtime that was requested of her. As a salaried worker, this teacher never mentioned any grievance about the additional workload. When the owner was served a wage-and-hour lawsuit by the teacher, he was caught by surprise. Although there was no way to discern if the teacher’s calculations regarding her work hours were precise, the center was guided by their lawyer to settle for the presented amount rather than take the risk of other present and past employees joining the lawsuit.

Employment Practices Liability Insurance

Employee-related claims come at a steep price. Protect your childcare center from a lawsuit with an EPLI plan that’s tailored to you.


An EPLI policy protects you against lawsuit claims made by current, past and possible employers, as well as visitors. It’s coverage for a wide range of suits that stem from:

1. Wrongful termination

2. Discrimination

3. Sexual harassment

4. Service refusal

5. Other employee claims