worker compensation insurance

Worker Compensation Insurance Pays You Compensation For Injury At Work

Discover all about worker compensation insurance / employers liability insurance; how it differs from accident sickness insurance; how it pays your compensation following an accident at work and the benefits to the safety in your workplace of involving your employer’s insurer in your claim.

What is worker compensation insurance?

An injury at work is one of the most common types of accident in the UK.

Minor work injuries and insurance policy excess

The majority of injuries at work are minor – resulting in a quick recovery period and a small compensation claim.

Watch out – small claims may fall within the excess of your employer’s worker compensation insurance. However, your employer will be under a duty to notify their liability insurer of any claim made.

Serious work injuries

However, some injuries are very serious causing permanent disability and a large amount of lost income.

If your employer had to meet the expense of a large personal injury claim directly – your employer would quickly go bankrupt or simply would not be able to pay.

Requirement on employers to have workers compensation insurance

To ensure your right as an employee to receive the compensation you are entitled to – your employer is required by law to have in place an insurance policy which will pay your compensation claim if you are injured in the workplace.

This policy is known as worker compensation insurance or employers liability insurance.

Show your employer was legally at fault

Watch out – for the employers liability insurance to meet your claim, your employer must be shown by your solicitor to be legally at fault for causing your injury.

What is accident sickness insurance?

Accident sickness insurance is also known as accident sickness unemployment insurance.

Private policy taken out by a worker

It is a private policy you can take out as an employee which will make certain payments on your behalf if you are absent from work or you are made unemployed as a result of accident or sickness.

Differs from insurance your employer must have

This is not the same as worker compensation insurance which is taken out by your employer and actually pays for your personal injury compensation claim.

Effect on your personal injury claim

If you have an accident sickness insurance policy – let your solicitor know as it could affect the amount of lost income you can claim as part of your compensation.

Who do you claim against – your employer or the insurer?

Claims against employers

You must always claim against your employer.

Claim passed to employer’s liability insurer

Once you have made a claim against your employer – the claim will be passed to your employers liability insurer to deal with on your employer’s behalf.

Investigating your claim

The insurance company will investigate your accident and pay your compensation only if it is satisfied that your employer was responsible for your injuries.

Indemnifying your employer

In other words – the worker compensation insurance company will “indemnify” your employer for any proven compensation claims.

Need of a solicitor to make your work injury claim

Worker compensation insurers will not take your claim seriously unless a specialist solicitor is involved and, even then, it is often necessary for your solicitor to start your claim in court for you to get the correct amount of compensation.

workplace compensation insurance employer liability
Workplace Compensation Employers Liability Insurance

Do you still have a claim if your employer has gone bankrupt?

“Yes” – as long as your employer was insured at the time of your injury (as an employer must be).

Tracing a worker compensation insurer

The worker compensation insurer can be traced by your solicitor and will be obliged to meet your personal injury claim.

Bankruptcy during your claim or before your claim commenced

This holds true if your employer goes bankrupt during your claim or was bankrupt (and no longer in business) when your claim was commenced.

Employer bought by another business

Be aware – sometimes a business may be bought or taken over by another business. In this instance – the new business may be liable for the your personal injury claim even if your were employed by the former business. See the Transfer in Undertakings (Protection Of Employment) Regulations.

What are the advantages to the safety in your workplace by making a compensation claim?

You will be pleased to know that the advantages are quite significant.

Removal of dangers at work

As worker compensation insurance companies do not like to pay out large sums of money too often – pressure will be exerted on your employer to remove the dangers that caused your accident.

Warning by employers liability insurer

A simple warning that your employer will not be insured for any similar accidents is normally sufficient for an employer to have to change its ways.

Report to the Health & Safety Executive

Further more –  your employer will have to report the accident to the Health and Safety Executive – who will ensure that any dangers are removed.

See our workplace accident records article – to find out the records your employer should keep including a RIDDOR report to the HSE.

Making your workplace safer

The advantage of you making an accident at work claim is therefore simple – your employer will remove the danger from the workplace that caused your accident and so remove the risk to any other employee from being injured as you were.

You are doing both your employer and your workmates a service by making a claim. Your employer will be forced to remove the danger that caused your accident and so eliminate the risk of a workmate being injured in the same way.

Remember – your injury might be small, but a workmate’s injury could be much worse.

Worker Compensation Insurance Summary & Next Steps

You now know all about worker compensation insurance; how it is different to accident sickness insurance; how it can be used to pay your compensation claim and force your employer to remedy any danger in the workplace.

See our accident at work article – to find out about the types of compensation you can claim from your employer’s worker compensation insurance for a workplace injury.

Our Specialist Solicitor Free Consultation

Remember – you can access our specialist solicitor free online help at any time.