You must get WEGAS XL employers liability insurance in the Netherlands as soon as you become an employer. WEGAS XL Employers liability insurance insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you.
An employer can incur significant costs when an employee has an accident while performing his work, the employer’s liability insurance is excellent for this. The accident can take place on the work floor or on location, but also during traffic participation, commuting or other work-related activities.
Liability insurances for businesses
You can think of the latter, for example, with this extensive coverage for employer’s liability insurance for company outings, attending a workshop or making a business trip. If there is serious personal injury, this could even endanger the survival of an organization. A liability insurance for companies (AVB) or a motor insurance does not always provide sufficient cover for this.
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How Liability Insurance in the Netherlands works
Most private-sector employees are covered by workers’ compensation laws that have been established at the state level. The state requires most employers to carry workers’ compensation insurance.
Workers’ compensation provides a certain level of coverage for lost wages and medical expenses for employees. You can also get some compensation for beneficiaries when an employee falls sick, gets injured or is killed as a result of doing their job. In order to qualify for workers’ compensation benefits, you don’t need to sue the company to establish fault.
However, when an employee feels that this compensation doesn’t adequately cover or represent the damage that has been done —maybe because they have the feeling that their employer’s negligence (partly) caused their injury— the employee may decide to sue their employer for damages that arose from their situation, such as pain and suffering.
For such cases an employers liability insurance in the Netherlands is needed. This insurance is designed to deal with expenses that fall outside the realm of the workers’ compensation statutes or general liability insurance. The employers liability insurance in the Netherlands provides additional protection against financial loss for the company or business.
Interesting judgments and examples of employer’s liability
- Bruinsma Carpet B.V. Employee delivers package in his own car. Auto Total Loss. Unfortunately not insured by the employee, but the employer still has to pay for the damage.
- Arena Arrest. A company van flips over at the Arena. Everyone gets paid except the driver with damage. The employer may pull the wallet to pay for the damage.
- Contractor Arrest. A carpenter has to pick up his mates with his own car. Major collision with ditto loss item for the employer because he is held liable for the financial damage.
- KLM Pilot in Ivory Coast. A pilot has to spend the night in a hotel. The taxi ride does not end well; a spinal cord injury. KLM has to pay.
- Taxi driver Arrest. A taxi driver is hit by a train. Fortunately, there is accident insurance, but it is not yet clear whether the employer was sufficiently insured. If not, the employer may pay extra
- Insurance Judgment. Home care worker falls in the snow with the bicycle. Once again, the Supreme Court finds that the employer should have been properly insured.
- Gardener. Gardener has an accident on a public road. The employer is liable for the damage to the next of kin.
Reasons Employers Liability Insurance in the Netherlands
- The law and especially jurisprudence are developing. This changes the obligations and responsibilities of companies and the liability risk, as is the case with an employer’s liability insurance.
- Industry associations and clients are increasingly obligated to have business liability insurance with a minimum insured amount.
- Employers are becoming more aware of the possibilities to claim.
- Defense costs can be high when a policyholder is sued, even if this person is not to blame.
The details of a WEGAS XL Liability Insurance
An WEGAS XL employer’s liability insurance covers negligence lawsuits over injuries and occupational diseases that happen with work-related activities. This insurance helps to cover the legal costs in case an employee sues the company for a work-related injury.
Even when a company compensates their employee for lost wages and medical care, the employee can still file a lawsuit that can result in high legal costs. It is possible that your employee is suing your company.
According to a Hiscox Guide to Employee Lawsuits, the average sum a company without an employers liability insurance would have to pay in court cases is € 110,000.
What is not insured on a employers liability insurance in the Netherlands?
Not everyone needs an employer’s liability insurance. There are a few exceptions worth noting. A company doesn’t need employer’s liability cover:
- If you are a sole trader with no staff.
- If you run an unincorporated family business.
- When the company employs only you the owner, owning 50% or more of the share capital of the company.
If you do fall into one of these exceptions and retain work experience students, or unpaid volunteers you must still have employer’s liability insurance.
Employers’ liability insurance in the Netherlands also won’t be covering every situation. Some exclusions include criminal acts, purposeful violation of the law, fraud, illegal profit or advantage. Claims that arise out of downsizing, employee restructurings, layoffs, factory closures, when a company mergers, strikes or acquisitions.
If an employer intentionally makes work-related injury or illness worse towards an employee, employers’ liability insurance will not cover the cost. The employer will also have to pay all the expenses if the employee wins in court.