What does employer liability insurance cover

EMPLOYER'S LIABILITY INSURANCE

Employer liability always arises if an employee suffers damage in the course of his professional activity, be it due to an accident or a work-related illness. In this case, the employer can be held liable for the financial consequences suffered by the employee. That is why insurance protection against these risks is indispensable for employers and compulsory in many countries. In Germany, the employers' liability insurance association is responsible for employer's liability insurance. All entrepreneurs who employ employees are subject to compulsory insurance. There is a separate trade association for each branch of industry, there are 35 in total. The contributions that an entrepreneur has to pay to the trade association depend on the total wages for all employees and the hazard class to which the industry is assigned. If an employee has been harmed by an accident at work or an occupational disease, the employers' liability insurance association pays benefits in cash or in kind. This also includes rehabilitation measures or measures to promote vocational training, because restoring the ability to work has priority. Other benefits include, for example, the payment of injury benefits, pensions or compensation to survivors in the event of death.

If a company operates branches abroad, the country's own regulations with regard to employer liability must be observed. Not every country is required to take out insurance against employer liability risk. In the event of damage, however, a lack of insurance cover can threaten the existence of the company. There are also differences to be considered with regard to the requirements for insurance contracts. For example, in China, each province has its own regulations. It should also be noted here that almost exclusively Chinese insurance companies are approved. However, there is no obligation to take out employer liability insurance in China. In Great Britain, on the other hand, without proof of Employers Liability Insurance - as it is called - you risk fines or even a professional ban. In Great Britain, this insurance may only be taken out with specially authorized insurers. Thorough information on the subject is therefore extremely important for international entrepreneurs. (20110207)