Osiguranje od odgovornosti poslodavca

Employer Liability Insurance

Employer liability insurance – An employer is almost always responsible for the damage that an employee suffers at work or in connection with it according to the general principles of liability for damage, either based on the principle of subjective or objective responsibility for damages.

If an employee suffers a work-related injury or material damage in connection with work, the employer must compensate them for the damage. In addition to the general principles, the employer is also obliged by the Labour Law and the Occupational Safety and Health Law to insure all employees against the consequences of injuries at work, occupational diseases and work-related illnesses in order to provide compensation for damages.

For an employee to have the right to compensation for damages due to an injury at work, the resulting damage must be causally related to work for the employer.

Even though you have done everything to carry out the work and activity you are engaged in with due diligence, following fair business practices, regulations, and rules of the profession and science, accidents and harmful events still happen unexpectedly and suddenly. No activity is perfectly arranged, and omissions and mistakes are always possible.

Compensation claims filed against an employer or company can be extremely high. Especially when it comes to intangible damages not limited to tangible values. Paying damages can certainly cause you great financial losses. It can also damage your reputation and reputational risk if you do not treat claims for damages professionally and responsibly.

Due to well-founded and unfounded claims for damages, you will certainly spend significant financial resources, your business and leisure time, and energy.

Who is this type of insurance intended for?

Employer liability insurance is primarily intended for legal entities with a legal obligation to contract  insurance against their liability for compensation for damages caused by death, bodily injury, or injury to the health of employees, or damage or destruction of their belongings during their work for the employer, both on the basis of the registered activity and possession of things or a legal basis as a source of danger.

What is the significance and what are the specifics of this insurance?

The very concept of responsibility is very broad, and many damages can occur and be attributed to the employer’s responsibility. The extent of the danger depends on the activity, but also some other parameters.

By concluding an employer liability insurance policy, you get legal and financial protection in the process of resolving claims for compensation of employees, both from the consequences of well-founded and unfounded compensation claims.

You only need to read this text and get to know the basics of this insurance, without which serious business cannot be started in orderly countries, and which is unavoidable in almost all segments of business activities.

For particular solutions based on the specific characteristics of the activity you are engaged in, contact us for an agreement and selection of the most appropriate liability insurance to protect your property and legal interests.

Employer liability insurance – What is insured?

Employers’ liability insurance ensures the legal civil liability of you as the insured person for damages caused by death, bodily or health injury, as well as damage or destruction of belongings of employees in your company in relation to work.

Who is considered an employee?

Employees are persons who are employed by the employer. Employees are also persons who are professionally engaged by the employer based on employment contracts, secondary employment contracts, temporary employment contracts, etc. until they acquire the status of an insured person based on an employment relationship or in another way.

Employer liability insurance – What risks are covered?

Liability is covered for damages arising from your business and activities and/or from possession of things and/or from a legal relationship and/or a certain property as a source of danger. This includes responsibility for the use, possession, lease or usufruct of land, buildings and premises used for the performance of activities, responsibility for the use of facilities that serve your employees, etc.

If separately agreed, liability for damage caused by theft of property and for purely financial damage may also be covered.

What is the difference between general liability insurance and employer liability insurance?

General liability insurance and employer liability insurance are similar, but they provide different protection and coverage against claims for compensation from third parties, or employees.

General liability insurance protects the business owner/the employer from claims for compensation from third parties (customers, clients) but not from employees.

The employers’ liability insurance protects the employer from claims or lawsuits for damages only from the company’s employees.

For this reason, it is necessary to have both general liability insurance and employer liability insurance for damages suffered by employees related to work for the employer.

For what amount is the insurance contracted?

Employer liability insurance is concluded for the sum insured, which represents the upper limit for compensation per one harmful event. The insurance sum is unique for damage to persons and property unless otherwise agreed. In addition to the insurance sum for each harmful event, you can have an aggregate insurance amount which represents the total liability of the insurer for the entire insurance period. The choice of insurance amount and coverage is very important and should represent the upper limit for damage claims.

What does the amount of the insurance premium depend on?

The amount of the insurance premium depends on the choice (amount) of the coverage limit. More precise insurance sums per harmful event or aggregate insurance sums depend on the source of danger, class of danger, total income and other special agreements.

Employer liability insurance – What is provided by this insurance and what are our obligations?

If a damage claim is filed against you by an employee in an amicable or judicial proceeding, we are obliged to, in cooperation with you:

  • prepare a defence against unfounded and excessive damage claims,
  • meet well-founded damage claims,
  • propose an agreement on compensation of damages between the employer and the employee as the best option,
  • assist and provide legal assistance in case of court proceedings if the employee and the employer cannot reach an agreement, and the employee (or the employee’s family members) want to exercise their rights exclusively in court proceedings.

What benefits can you expect?

Depending on the extent of the danger, the method of payment of the premium, the duration of the insurance contract, as well as depending on whether you have had liability damage in the past few years, you may be entitled to certain bonuses and discounts on the insurance premium.

Employer liability insurance – additional questions?

Eurosolutions Ltd. is an innovative company for mediation in insurance – a broker for insurance affairs, an adviser or consultant for property insurance and a person who understands the needs and activities of the client, helps them manage risks and mediates in concluding contracts and settling claims.

If you want to know more about employers’ liability insurance and if you have a specific request, contact our team of experts for this type of insurance at:

Eurosolutions Ltd., Belgrade,
67a Požeška Str., office 4.06
Telephone +381 11 347 17 08,
E-mail: office@eurosolutions.rs

Eurosolution Ltd. Belgrade is a renowned company on the insurance market in the Republic of Serbia and abroad. Our main and sole activity is mediation in insurance, consulting and assistance in risk assessment, reporting, evaluation and processing of claims.