(a)Define the term employer's liability in insurance. (b)State three benefits that can be covered under employer's liability. (c)State three causes of busin...

Answer Details

(a) Employer's liability insurance

Employer's liability insurance is a class of insurance that covers an employer against legal liability to pay compensation for death, bodily injury, disease or ill-health suffered by his employees in the course of and arising out of their employment. It protects the employer from claims brought by workers who are injured or fall sick because of their work.

(b) Three benefits that can be covered under employer's liability

1. Compensation for death or permanent disability of an employee arising from a work accident.
2. Medical, hospital and treatment expenses incurred by the injured employee.
3. Loss of earnings or wages during the period the employee is unable to work, and legal costs of defending claims.

(c) Three causes of business interruption

1. Fire or explosion that destroys premises, plant or stock, forcing operations to stop.
2. Breakdown of essential machinery or equipment.
3. Natural perils such as flood, storm or earthquake damaging the business premises.
4. Loss of power supply or of key raw materials halting production.