Employer’s Liability Insurance (ELI) and Workers’ 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 illicit litigation and, consequently, anxiety for the parties involved. The differences between the ELI and the WCI are related to where they apply and what they cover. We will discuss about them here briefly.

where they apply
employer’s liability insurance
As an employer, it is compulsory for you in the UK to purchase employer liability insurance. Not buying attracts penalties under the law. In certain situations, your employees may feel that you are responsible for their work-related illnesses/injuries and sue for it. If it really is a case, it can bring expenses such as hospitalization, financial 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 rules, providing training, and verifying physical fitness, and they are injured, it will amount to your negligence under the rules framed in the Employers’ Liability Insurance Act, and the employees are likely to feel appropriate to sue. because you are responsible.

workers compensation insurance
On the other hand, work accident insurance is coverage for the well-being of employees. It depends on the circumstances that are the tone of relationship between employer and employees. Therefore, if you are more concerned about the health and safety of the employees, you should take out this insurance. It does not matter if it was your fault or that of your employees that caused the illness, accident or death, this insurance comes to your aid.

employer’s liability insurance
As an employer, you must go to court if the affected employee sues you. He must pay financial compensation and take care of hospitalization and medication. ELI covers all these expenses.

Also, for employees ELI covers permanent and temporary disability, injury and wrongful death on the job. It covers the cost of litigation as well.

workers compensation insurance
For employers, WCI is a good Samaritan. In most cases, it ensures that your employees do not resort to litigation. However, in such an unfortunate event, 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 obtain compensation from the employer to cover medical and hospital expenses and a certain part of wages. In most cases, it is two-thirds or more. WCI covers litigation expenses by the employee. Overall, WCI takes care of the situation and makes sure employee litigation is avoided.

WCI covers compensation (salary) in case of temporary disability for the period of absence. If the individual has become permanently disabled and is unfit for employment in the current occupation, WCI covers the cost of vocational training and rehabilitation and the cost of searching for work, if desired.

Although both the 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 need of your business.

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