The Employers Liability (Compulsory Insurance) (Guernsey) Law 1993, is perhaps one of the most important insurances bought by any company. Quite apart from the need to hold a suitable policy under the Law, failure to do so could result in a hefty fine. It forms a vital protection for individuals and companies financial assets.
The purpose of the insurance is to provide a source of money which is available should an employee pursue a civil action for compensation following an accident at work or ill health resulting from a work activity, i.e. exposure to asbestos resulting in mesothelioma. Often it is many years after exposure that an employee develops a disease, they have changed employers many times or their employers have gone out of business, but if Employers Liability insurance was in place at the time, a court could award a claim against that policy.
Failure to maintain an insurance policy is an offence, more importantly if an insurance policy is not available to meet a civil claim, the personal assets of a company’s principals could be at risk. |
