Public Liability Insurance vs. Employee Liability Insurance

Businesses have a ton of options when it comes to liability coverage, and choosing the right one can be puzzling. The right premium, however, depends on the nature of your business and whether you have employees or not. Here is the difference between public and employers liability insurance.

Employee Liability Policy

EL is a mandatory cover that insulates your business from claims made by current or ex-employees for injury, illness or death. For example, if you have a small electrical company and one of your apprentices forgets to ground a circuit and suffers an electric shock, this worker can win in the event of a dispute. Presumably, you are responsible for providing basic safety training to all your employees.

Public Liability Policy

Public liability insurance cushions your business against claims from third parties due to injury or illness when in contact with your business. This cover is not mandatory, but it is essential. If your employee scrapes a car while on duty, this premium will handle any grievances that may come as a result of this incident. Here’s a list of people included by this indemnity:

  • Clients
  • Pedestrians
  • Other businesses

With that out of the way, it’s clear you need both options, especially if you operate a high-risk business with lots of foot traffic. Also, you might want to check out for another set of confusingly similar business liability insurance.