Every company, whether it is small or large, must have employers liability insurance. It is not only necessary but is mandatory according to the Employers Liability (Compulsory Insurance) Act, 1969. This insurance is to help businesses cover unexpected costs from the injury or death of the employee. Especially for small businesses, it is particularly advantageous because of the very high costs of health and safety requirements, which at the time of the occurrence make it difficult for businesses to bear.

Employer’s commercial liability insurance covers costs associated with an injury or fatal accident that occurred on-site or off-site while doing their job. Medical expenses, lost wages during the period of treatment of employees are also included in this insurance. It also includes legal costs arising from lawsuits filed by an employee’s family against the employer for causing injury or death.

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Small businesses that do not have sufficient capital to save the business in trouble can 0protect their business with professional liability insurance. Employer insurance is an important part of the business risk management systems. So, by having employers liability insurance, small businesses can be assured timely monetary assistance when unexpected financial obligations. Also, this insurance creates a sense of security among employees. It also shows that the employer cares for its employees.