Planning for risk management strategies is crucial for any business seeking long-term growth. Choosing the right business and liability management insurance is essential as it saves employers from spending huge sums.
Employer liability insurance and are among the essential business insurance that employers must have for workers' safety. Many times, these two insurances are referred to interchangeably. However, the fact is that they differ from each other in terms of scope, coverage, meaning, etc.
So, let us learn about the differences between these two insurance options below.
Workmen바카라™s Compensation Insurance Vs Employer Liability Insurance: An Overview
Parameter |
Workers Compensation |
Employer Liability Insurance |
Definition |
It is a  that protects the employee in case of workplace-related illness injury accident etc. |
It is insurance that protects the employer against legal expenses that they may incur. |
Requirement |
Mandatory |
Optional |
Scope |
It compensates for the injury death or illness of the employee caused by workplace accidents. |
It covers the legal costs when an employee sues an employer for illness or injury not covered under workmen's compensation insurance. |
Claim Basis |
An employee can make the claim and it can be raised even if there is no fault of the employer. |
An employee or even a third party such as employee dependents can raise a claim against the employer on the basis of employer negligence. |
Amount Payable |
As per the Workmen's Compensation Act. |
As per policy terms. |
Difference Between Workmen's Compensation and Employer Liability Insurance: Explained
What is Workmen바카라™s Compensation Insurance?
Workers' compensation insurance is an insurance plan that provides financial compensation to employees who suffer from an injury or illness due to a workplace accident. Under this insurance plan, an employee is entitled to receive compensation for availing of medical treatment and recovery.
Under this type of business insurance, the employer also receives coverage in terms of the legal expenses that they may incur.
What is Employer바카라™s Liability Insurance?
Employer liability insurance is a type of commercial insurance that provides financial assistance/protection to the employer. If an employee files a lawsuit against the employer, liability insurance compensates the employer against the legal expenses that he may incur for fighting the case. It covers the expenses incurred for the lawsuits filed by the employee or any other third parties.
Coverage
Workmen's Compensation Insurance: Under workmen's compensation insurance, an employee gets compensation for the following:
Illness and injury compensation- An employee receives financial assistance under the insurance, which covers the expenses related to medical treatment required for illness or injury due to the workplace.
Lost wages - If an employee is unable to resume their job due to a workplace accident, the insurance also compensates for the lost wages.
Accidental death - In the event of the employee바카라™s unfortunate death, the workmen바카라™s compensation insurance also provides financial assistance to the surviving family members and covers the cost of the funeral rites of the deceased employee.
Disability benefits- In some cases, the employee may suffer from partial, total, permanent or temporary disability. The insurance plan may cover the compensation for such a disability based on the provisions of the Workmen's Compensation Act.
Employer Liability Insurance: Under employer liability insurance, the following is covered.
Third-party lawsuits- Under this insurance, the employer receives coverage against third-party suits. For instance, if the employee sues the machinery vendor and the vendor, in turn, sues the employer for non-maintenance, the employer is covered for such claims.
Loss of consortium- If any dependent or family member of the employee sues the employer for negligence, the employer may get compensation under the Employer Liability Insurance.
Dual capacity claim by an employee- If an employee sustains injury caused by a product/machinery produced by the employer, then the employee may sue the employer in dual capacity as the manufacturer as well as the employer. The insurance may cover legal expenses incurred in this regard.
Consequential bodily injury- The employer may also receive assistance under the Employer Liability Insurance if the employee sues them for injury due to high stress in the workplace.
TATA AIG Workmen바카라™s Compensation Insurance: Your Key to Employee Safety
Employer Liability Insurance and Workmen's Compensation Insurance are distinct business insurance plans. While the former offers coverage against employer liability, the latter is designed to assist the employees.
Besides, workmen's compensation insurance is mandated by law, and hence, all employers must have reliable and comprehensive insurance for their employees. Are you looking for broad coverage and affordable workmen's compensation insurance? If so, you can rely on TATA AIG.
They provide some of the most extensive employee compensation insurance plans for your workforce, allowing you to fulfill your obligations as a responsible employer. From medical expenses coverage to rehabilitation and disability coverage, their plans have got it all together.
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