Employers' liability under contractor work insurance
Mar 23, 2021
question:
Itzick Hello, I wanted to clarify a few issues regarding the employer liability chapter in the contractor's policy:
Does it apply to foreign workers, workers from the territories, or refugees with a temporary residence visa that is renewed every few months?
Does the insurance cover death?
Do I need to inform you, as our insurance agency, about any new employees?
question:
"Itzik, hello, I wanted to clarify a few issues regarding the employer liability chapter in the contractor's policy:
Does it apply to foreign workers, workers from the territories, or refugees with a temporary residence visa that is renewed every few months?
Does the insurance cover death?
"Do I need to inform you, as our insurance agency, about every new employee?"
answer:
The chapter dealing with "employers' liabilities" in a contractor's policy is intended to protect the employer and not the employee (!). In other words, if the employee is injured at work, the compensation to which he is entitled will be paid primarily by the National Insurance Institute. This is, of course, to the extent that he is recognized as a "work injury" in accordance with the provisions of the law.
The contractor's policy provides a different solution when the employee files a direct civil tort claim against the employer. That is, a claim based on a claim that the damages suffered by him were the result of the employer's negligence. In these situations, the contractor's policy protects the employer on two levels.
The chapter dealing with “employer liability” in a contractor’s policy is intended to protect the employer, not the employee (!). In other words, if an employee is injured at work, the compensation they are entitled to will primarily be paid by the National Insurance Institute—of course, provided they are recognized as a “work-related injury” under the law.
The contractor’s policy, however, provides a different kind of protection when the employee files a direct civil tort claim against the employer. That is, a claim based on the allegation that the damages suffered were the result of the employer’s negligence. In such cases, the contractor’s policy protects the employer on two levels.
On the first level, by managing the legal process while attempting to fend it off both in terms of recognition of liability and in terms of the rate of compensation. On the second level, and to the extent that the claim is accepted, whether in the courts or in a settlement, the contractor's policy will provide the financial coverage.
Furthermore, you must fill out Form 648 (Prime Contractor's Notice of Hiring a Subcontractor) - click here for more details.
Please note that in every employment contract, National Insurance contributions must be paid (even if the employee is "illegal"). Only a regular payment to National Insurance will cover the employee for issues such as survivors' pensions, disability pensions, and the like.
A civil claim that can be filed against the employer will not include benefits paid by the National Insurance Institute, but only claims beyond what the National Insurance Institute pays. For example, a 25% difference in the maximum disability benefit that the National Insurance Institute pays (up to 75%) or compensation for heads of damage for which the National Insurance Institute is not responsible, such as "loss of enjoyment", "pain and suffering", "disability", and the like.
Regarding the number of employees: Contractor work insurance is not limited to the number of employees (unlike, for example, office or business insurance, which requires updating the number of employees and/or the annual salary, based on the policy basis).
Management of legal proceedings
