When we start a business, or create a company, there are a number of things we know beforehand, and many others that will be new to us. Taking out insurance Liability and Accident Insurance, is probably among the last. We will see why it is of the utmost importance to insure our workers correctly.
Why should we know what insurance affects our workers?
These are the reasons for this:
- Because, as employers, we need to know what insurance we are insured for. obliged to contract; and our sectoral agreement can oblige us to do so.
- Because, if If we do not subscribe to them, we expose ourselves to a sanction.
- Because, if we don't hire them, the compensation demanded will come out of our pocket.
As we can see, the risks of not knowing them are clear.
What are the insurances that protect our staff?
We must know the difference between two policies and the guarantees which, in the event of a fatality occurring to one of our employees, will apply:
1. Civil Liability insurance and its Employer's Liability guarantee
This guarantee in the event of death or permanent incapacity for work-related reasons (illness or accident) protects the employer who, through negligence, may be liable to pay compensation to the employee or his or her heirs. A very clear example of this is a failure in the prevention of occupational hazards, which can be blamed on the company.
We always recommend that the sub-limit per victim should be at least €300,000.
2. Convention Accident Insurance
More than 90% of the sectoral agreements require the employer to take out a collective agreement insurance policy in favour of his employees, with a death and disability capital sum, that is usually in the region of €20,000-40,000.
Main differences between accident and liability insurance for employees
The way compensation is paid is totally different:
- The subscribed capital in the accident insurance it is payable directly to the family or to the worker, if the circumstance insured in the policy occurs; as it is a right that the negotiated agreement offers to employees in the sector.
- On the other hand, the compensation from the insurance liability insurance will only be enforceable if the company has been negligent in any way. which results in the death or disability of the employee. In addition, compensation will always be paid following a claim or demand from the family to the company.
As we can see, we are talking about two essential policies and guarantees, since, if we do not do so, these amounts may rise in some cases to more than €300,000 in compensation, which will have to come out of our pocket if we do not take out the insurance.
If you need advice on your business insurance, contact us so that we can help you. At PIB Group Iberia and Investment, we have more than 25 years of experience advising entrepreneurs.
