Tuesday, November 13, 2012

Who Requires Employers' Liability Insurance and Know How It Helps

Every employer is responsible for the health and safety of the employees while they are at work. His primary duty is to establish a safe working environment so as to prevent workplace accidents. Despite taking appropriate preventive measures, if any employee gets injured, the injured has all the rights to sue the employer making him legally liable for the injury. In such cases, the employer needs to compensate the employees for costs of hospitalisation, along with the legal costs. Since accidents are inevitable at workplace, it is sensible on the part of the employer to purchase insurance that enables him to meet the costs of compensation.

Employers' liability insurance protects businesses from liabilities. Let us discuss about this insurance and its benefits.

Who requires employers' liability insurance?
Employers' liability insurance is required by companies that employ people to work for their organization. Even if the company has only one employee, it still requires employers' liability insurance. In Ireland, it is mandatory for every company to take employers' liability insurance.

Most employers ignore this policy thinking that they do not have any employees. But, according to Health and Safety Executive (HSE) Ireland, any person becomes an employee of an organization, even if he enters into a contract of service or if the PAYE (pay as you earn) deductions are made from his wages or if the employer has a control over when and where the employee carries out his work.

Exemptions in taking the policy
Though employers' liability insurance is mandatory for every company, there are a few exemptions. Public bodies like government departments and local authorities, police and health authorities, non-limited companies which have the owner or his family members as employees, sole traders and partnerships with only one employee, where he owns at least 50% of the issued share capital in the company, are exempted from taking compulsory employers' liability insurance policy.

Level of cover required
As per the law, every employer must have employers' liability insurance worth minimum of £5 million. If the risks and liabilities associated with the business are more, the company requires more cover. As many insurance companies automatically provide a cover of at least £10 million, there is nothing to worry about it.

Each employer will receive a certificate from the insurer after purchasing the policy. This copy should be displayed in the facility, making it visible to employees and the same needs to be present when asked by Health and Safety inspectors.

Things covered under employers' liability insurance
Employers' liability insurance covers all those claims of liabilities which are likely to come against the employer, say, when an employee meets with a fatal accident or suffers from an illness while working. By and large, the insurance covers expenses incurred by the injured, legal and hospitalization expenses.

Monday, November 12, 2012

How to Buy Insurance at the Best Value

What is the most important factor when purchasing insurance? Most people would say the premium. The premium is an obvious factor, but it should not be the only contributing factor to the decision. It is important to make sure the coverage is correct, look for bonus coverages, and work with reputable agents. When purchasing the cheapest policy it is very possible that it will cost more in the long run.

Correct Coverage

The most important step when purchasing insurance is making sure correct coverage is provided. Without the correct coverage there is no point in even purchasing insurance, because if a loss occurs on property that is not properly protected the claim will be rejected or only partially paid and the insured will have to pay the remaining expense themselves. For example, if a dwelling's replacement cost is $400,000 but it is only insured for $300,000 the insured will have to pay around $70,000 out-of-pocket due to the 90% co-insurance clause that is found in most insurance policies. Looking back saving that $50 a year by not insuring the dwelling to value could easily cost the insured more money in the end.

Bonus Coverage

Many policies have free bonus coverages built into them that some bare bone policies will not have. One example of this is Nationwide's "Vanishing Deducible"; this is provided in all of their auto policies and provides savings during the policy. Another example is in some policies windshield replacement is provided with no deductible. This again can save money during the policy, but may not be the cheapest premium upfront. When purchasing a policy look for these types of bonuses and decide if they could benefit your specific needs.

Sunday, November 11, 2012

Income Protection Insurance: Why Should You Buy One For Yourself?

When there's a valuable asset that you want to invest on, like a car, a yacht, new house on the lake and a lot more, it needs to have insurance plans. Your income is the greatest asset you'll ever have in order to buy the rest of your future wants. However, how will you be able to protect your income when an unfortunate event happens? Experts agree that before we reach the age of 65, we will likely to get an illness or might lose our jobs.

But even sick leaves or health policy won't be enough to pay other daily expenses. Your company would leave you struggling to get by and deal with your illness and disability. Thankfully insurance companies now offer income protection insurance that covers you when you are unable to get back to work and produce an income. Learn how this plan could help you pay the bills even while seriously ill or injured.

Coverage

Income protection insurance covers 75% of your current salary in the event that you had an accident until you get back to work or retire. There are two terms on how you should be paid, short-term or long-term policies. Long-term protection allows you to have pay outs until you retire. While short-term policies would do pay outs for a maximum of 12 months until you are able to return to work. Therefore, long-term policies would give you a much higher level of protection but may also have higher premiums.

Protection

Your income is indeed your most valued asset that needs to be protected. This plan ensures your salary to be paid off while you are recovering from an accident or illness, or simply got out of job. Before buying and choosing a plan for you, learn how your company handles sick leaves and disability pay. This would then help you on how long can you survive until you receive your monthly benefit. The longer the deferred payment periods you choose, the lower the cost of the premiums.