Employers Liability Insurance vs. Workers Compensation
If you are a business owner you have to ensure that your company is adequately protected. This means opting for the right insurance policy is a crucial business decision. Employers liability insurance and workers compensation insurance are often used interchangeably, but there are a few differences between the insurances. The article below highlights the difference between employers liability and workers compensation insurance.
Thank you for showing your interest in workmen-compensation-policy. Our relationship manager will call you to discuss the details and share the best quotes from various insurers. In case you have any query or comments, please contact us at email@example.com
Employers Liability Insurance vs. Workers Compensation
What is Workers Compensation Insurance?
Workers compensation insurance is commonly known as employees compensation insurance or workmen insurance. It is a commercial insurance policy. It mainly covers the legal liability towards its employer by providing compensation in case of an accident that causes injury or kills the employee during employment. It also covers diseases caused or aggravated due to employment conditions.
For example, if one of your employees/workers fractured his hand in the factory while operating machinery. Then, in this case, the workers compensation insurance can help pay for the treatment as a means of compensation.
What is Employers Liability Insurance?
Employers liability insurance is also a type of commercial insurance that provides financial protection to the employers if an employee sues the employer for a work-related injury. Additionally, this insurance also covers the legal cost and third-party claims.
In continuation with the above example, if the employee/ worker feels that workers compensation didn't cover all the expenses, then the worker can file a lawsuit against the employer for poor machinery. The legal cost incurred by the employer (whether or not the employer is liable) can be covered under employers liability insurance.
Difference Between Employers Liability and Workers Compensation
Since both these policies are designed on similar lines, it is pretty natural to get confused between them. We have already stated the basic idea of both the policies with an example for better understanding. Further, we shall look at the differences between them.
Workers Compensation Insurance
Employers Liability Insurance
What is it?
Legal liability by the employer to pay compensation in case of injury caused to the employee
Financial protection to the employer to pay for compensation and legal expenses
Injury caused due to a disease Injury getting worse due to employment conditions Injury caused due to accident at the workplace Partial and permanent disablement Death or temporary disablement
Third party claims: For example, if the employee files a case against the vendor of the machinery and the vendor sues the employer for non-maintenance. Loss of consortium: A dependent of the injured/deceased employee can sue the employer for negligence. Dual capacity: If a product manufactured by the employer injures the employee, then he can sue the employer even as a manufacturer of the product. Consequential bodily injury: If the employee claims that the injury is caused due to high level of stress at work. False claims
As per the wages system
There is a major similarity between workers compensation insurance and employers liability insurance. Both cover workplace-related injuries or illness, but in different aspects. But, when it comes to practice, they are highly complementary. It is to be noted that these policies work in tandem to protect businesses from expenses related to employee injuries.
Thank you, PolicyBazaar, for providing such a positive experience and ensuring that well-being of my employees and business!
4 June 18, 2023
Provides Financial Security
I purchased Workmen Compensation Insurance from PolicyBazaar for my business owner looking to secure their employees' welfare and protect their business interests.Thankyou. Worth buying.
3.8 June 08, 2023
I purchased Workmen compensation plan which turn out to be the good decision. Thanks PB.
4.3 May 26, 2023
I recommend purchasing Workmen Compensation Insurance from Policybazaar. Their user-friendly platform, diverse policy options, exceptional customer support and efficient claims processing make them stand out from the competition.Thanks. It was a good decision.
4 May 21, 2023
I recently bought Workmen Compensation Plan at policybazaar website which provides comprehensive coverage giving me peace of mind knowing that my employees are well protected in case of any unfortunate event.Thanks.
3.8 May 16, 2023
The team at PolicyBazaar were responsive, courteous, and extremely knowledgeable. I had a few questions regarding the coverage terms and the representatives were patient in addressing all my queries. Thanks.
4 May 11, 2023
When it came to selcting the right Workmen Compensation Insurance, Policybazaar offered an impressive range of options from reputable insurers. I appreciated the comprehensive details avalable for each policy which helped me to take the better decisions. Thankyou.
3.8 May 06, 2023
I recently purchased Workmen Insurance plan from PolicyBazaar. The process was straightforward and I felt well-informed throughout, thanks to the clear and concise information provided.
4.3 May 01, 2023
I am absolutely delighted with the Workmen Compensation Insurance policy I purchased through Policybazaar. From start to finish, the entire experience has been nothing short of exceptional. I can confidently say that this is one of the best decisions I have made for my business.
3.8 April 30, 2023
Instant Protection Against Accidental Misshappening
I bought Workmen Compensation Plan from the Policy bazaar website online for our workers in my industry to get protetion aganst any Accidental miss happening caused to them. It offers amazing deals which provide them with medical coverage and help me to get instant protection against any loss. Thanks, PolicyBazaar.
+Premium varies on the basis of Occupancy, Business Activity & Coverage Type
Wait! Didn't find what you were looking for?
Our certified business insurance experts are just a call away.
Your call has been scheduled successfully.
Our experts will provide you assistance with your insurance coverage. Be assured, all your questions will be answered
Policybazaar is registered as a Direct Broker | Registration No. 742, Registration Code No. IRDA/ DB 797/ 19, Valid till 09/06/2024, License category- Direct Broker (Life & General)
Visitors are hereby informed that their information submitted on the website may be shared with insurers.Product information is authentic and solely based on the information received from the insurers.