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Personal Accident vs. Employer’s Liability Insurance

What’s the difference between Personal Accident insurance and Employer’s Liability insurance?

Both provide cover against injury and death. But beyond this, there are some important differences between the two.

In this post we’ll explain the key differences between Personal Accident and Employer’s Liability insurance, to help you decide which type of cover is best for you. Depending on your circumstances, you’ll either need one or the other, or both.

What is Employer’s Liability Insurance?

If you employ staff, employer’s liability insurance will cover your business for any claims employees make for injuries or illnesses caused by their work. Businesses will typically get a policy to cover all employees on their payroll.

An employer’s liability insurance policy can cover injuries employees sustain on the job. But they can also cover employees for illnesses that might develop as a result of their work, even if they don’t receive a diagnosis until some years after they leave the job.

What is Personal Accident Insurance?

Personal Accident insurance provides cover for an individual in the event of injury or death. The policy might provide a lump sum payment in the event of a serious injury, as well as additional cover for loss of income and other expenses during their recovery.

Though many Personal Accident insurance policies cover individuals for injuries they sustain during their working hours, some provide additional cover for injuries received outside of the job. Such policies might specify certain limits, though. For example, they may not provide cover for certain sporting injuries.

What’s The Difference Between Employer’s Liability Insurance and Personal Accident Insurance?

There are a number of key differences between employer’s liability insurance and personal accident insurance, including:

  • Employer’s Liability insurance policies cover employers for injury and illness claims from current and former employees. Personal Accident insurance policies cover the individual policyholders for any specified injuries in the policy wording.
  • Employer’s Liability insurance policies only ever cover individuals injuries they sustain on the job. Personal Accident insurance policies, though, can cover injuries sustained outside of working hours.
  • Employer’s Liability insurance policies can also cover for certain illnesses, so long as an individual develops them through their work. Personal Accident insurance policies only ever cover for injuries.
  • Crucially, businesses have a legal obligation to get Employer’s Liability insurance, which includes displaying a relevant insurance certificate. There are no such legal obligations when it comes to Personal Accident insurance.

Do I Need Employer’s Liability Insurance or Personal Accident Insurance?

  • If you employ staff, then employer’s liability insurance is a legal requirement.
  • Personal Accident insurance is optional and will provide the individual policyholder, your employees, with cover for any injuries specified in the policy wording.

If you’re a business owner, get employer’s liability insurance to meet your legal requirements, and to cover your business against any claims your employees might make against you. But you might want to add Personal Accident to your employee benefits scheme to cover any injuries employees might sustain, either during or outside of working hours.

Personal Accident Insurance as an Employee Benefit

Though there’s no legal obligation to do so, some businesses offer their employees individual personal accident insurance policies as part of their employee benefit packages.

If employees get injured in their line of work, then there’s no guarantee that making a claim against their employer will result in a pay-out. However, with personal accident insurance, employees can be sure to receive compensation as soon as possible following an injury, so long as it’s covered by the policy wording.

And more importantly, personal accident insurance policies can cover employees for accidents they receive outside of working hours. You can even allow employees to add family members to their policy.

So a personal accident insurance policy offers employees total peace of mind that, should the unthinkable happen, they’ll still be able to take care of themselves and their families. As an employee perk, it sends a strong message that you truly value your employees’ health and well-being.

Get Flexible, Simple and Affordable Personal Accident Insurance Policies From Capacity Insights Today

Whether you’re looking to invest in your first personal injury insurance plan, or you want to change or add to your current package, we’re here for you.

Work with us and we’ll tailor a bespoke personal accident insurance package that truly meets your needs at a price you can afford.

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