Employer Liability Insurance (ELI) and Worker’s Compensation Insurance (WCI) are two important insurance coverages to protect the interests of employees as well as employers. There are, however, certain differences between the two. Due to these differences, it can result in unlawful litigation and consequently anxiety for the parties involved. The differences between ELI and WCI are related to where they apply and what they cover. We will discuss about them here briefly.
where they apply
employer civil liability insurance
As an employer, it is mandatory for you in the UK to purchase employer liability insurance. Failing to buy attracts penalties under the law. In certain situations, your employees may feel that you are responsible for work-related illnesses/injuries they may suffer and sue for it. If it really is a case, it can bring expenses such as hospitalization, economic compensation and the like. ELI helps you in such circumstances.
While it is mandatory for you as an employer to have ELI, your employees must prove that the work-related injury/illness was due to your negligence. Imagine that yours is a lumber business. While they work, your employees must have the necessary equipment, training, and skills to operate them. If you employ them without teaching safety, training and fitness checks and they are injured, it will amount to your negligence under the rules under the Employers Liability Insurance Act and employees will likely feel appropriate to sue. because you are responsible.
workers compensation insurance
On the other hand, work accident insurance is a coverage for the well-being of employees. It depends on the circumstances that are the tone of the relationship between employer and employees. Therefore, if you are more concerned with the health and safety of employees, then you should take out this insurance. It doesn’t matter if it was your fault or your employees’ fault that caused the illness, accident or death, this insurance comes to your aid.
Coverage
employer civil liability insurance
As an employer, you must go to court if sued by the affected employee. He must pay financial compensation and take care of hospitalization and medication. ELI covers all these expenses.
Likewise, for ELI employees it covers permanent and temporary disability, injury and death due to negligence at work. It covers the cost of litigation as well.
workers compensation insurance
For employers, WCI is a good Samaritan. In most cases, it ensures that its employees do not resort to litigation. However, in such an unfortunate case, WCI covers the costs due to litigation. It covers the economic expenses to be paid to the employee affected by work-related injury, illness or even death.
Employees when insured at the workplace, under WCI, are guaranteed to get compensation from the employer to cover medical and hospital expenses and a certain portion of wages. In most cases, it is two-thirds or more. WCI covers the costs of litigation by the employee. In general, WCI deals with the situation and makes sure that litigation by employees is avoided.
WCI covers compensation (salary) in case of a temporary disability for the period of absence. If the person became permanently disabled and is unfit for employment in the current occupation, WCI covers the cost of vocational training and rehabilitation and the cost of looking for work, if desired.
Although both ELI and WCI are intended to protect the interests of employees and employers, there are differences in how they are applied. It is necessary to understand them and buy a cover according to the needs of your business.
