Most small businesses employ staff and staff can sustain personal injuries at work. While many personal injuries are covered by Accident Compensation legislation, employees do retain the right to civil action when a workplace injury is not covered by ACC. This can include mental injuries not accompanied by a physical injury, nervous shock or fright (which can often cause heart attacks and strokes) and diseases brought on over time such as by chemical poisoning and exposure to the elements or extremes of temperatures.
- Employer’s liability insurance is the product that steps in to plug the gap that exists between ACC protection and statutory liability to others. It also covers compensation ordered by a criminal court to an injured employee under the Health and Safety in Employment Act. Even if your business is not found liable, you could incur considerable legal expenses to defend your business.
- Our business insurance package includes an optional employer’s liability cover. This important and valuable optional employer’s liability cover will indemnify businesses in respect of a legal liability claim brought against the business by an employee in three areas:
- Damages as a result of an employee sustaining personal injury, including a sickness, disease or infection, provided that personal injury was not covered under the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 as amended.
- Punitive or exemplary damages arising from an injury that is covered by the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 as amended.
- Legal costs and expenses to defend a claim or to make an application to the Court to determine whether the personal injury is covered by the Accident Rehabilitation and Compensation Insurance Act 1992 or the Accident Insurance Act 1998 as amended.
For more information on business insurance and employer’s liability cover, please download and read the policy wording.