What is Employer’s Liability Insurance?

As an employer, you’re responsible for the safety of your employees while they’re at work. Unfortunately, sometimes an employee will suffer an illness or injury while performing their job. If you’re assuming ACC will cover all the associated costs, you could be leaving yourself open to financial loss. That’s because there are some things that ACC doesn’t pay out for, leaving you to pick up the bill. That’s where Employer’s Liability Insurance can help you.

What does ACC cover?

ACC will normally only cover situations caused by a specific event, or occasionally a gradually-developing condition caused by a repeated work-related action. They don’t cover:

  • Illness or contagious diseases like the flu
  • Stress, distress or other emotional conditions (unless linked to an ACC-covered injury)
  • Age-related conditions
  • Most hernias
  • Damage to items like glasses, pacemakers and hearing aids

Why do I need Employer’s Liability cover?

If an employee suffers from a work-related illness that ACC doesn’t cover, they may make a claim against you. Here are some examples of situations where an employee’s role may cause them to suffer a non-ACC-eligible condition:

  • You place an employee in a situation where they are under an extremely heavy workload for a prolonged period of time. The resulting stress triggers a heart attack or a stroke.
  • Your air conditioning system becomes infected with Legionnaire's disease, resulting in one or more of your employees getting sick.
  • You allow smoking inside your workplace, and an employee develops an illness as the result of passive smoke exposure.
  • An employee who has to deal with distressing media content as part of their job develops an anxiety disorder.

Employer’s Liability insurance covers you for the cost of defending yourself in court and any damages that may be awarded to the employee (subject to the terms and conditions set out in your policy document). These costs could run into tens or even hundreds of thousands of dollars and could have a significant impact on your business if you don’t have liability cover.

If you don’t currently have Employer’s Liability cover, or you think your current cover needs reviewing, contact Certus today to talk to one of our experienced team.