6 Considerations When Choosing Employer's Liability Limits
To work out what your EL limits may be, here are 6 important things to consider:
- Multiple claimants – your EL limit applies to each claimant individually. While the minimum limit should be able to handle a single claim, it’s important to keep in mind that multiple claims may emerge from a single incident.
- Nature of activities – review what activities your staff are doing to better gauge the likelihood and potential cost of an EL claim.
- Inner limits – EL policies may occur limits such as incidents arising from terrorism, war or nuclear risk. Learn what your policy limitations are to better insulate your business from risks.
- Concentration of staff – if your staff are concentrated in one main area, or several small ones, you may need a higher EL limit as one accident may affect them all.
- Hazardous locations – locations such as production lines, railways and construction sites are more susceptible to incident, so identify whether you operate in a high risk, hazardous location.
- Future circumstances – an EL claim can be filed years after an employee has worked for your business. Therefore, you should annually review your EL policy to see what has changed.