Employers' Liability
What is Employers Liability Insurance?
Employers Liability Insurance is very important for a business. If you have employees, then there is a chance that they will be injured or become ill at work. Employers’ liability cover enables you to be covered from any claims your employees make against you.
What does Employers Liability Insurance Cover?
If you are found to be responsible for any of your employees injuring themselves or becoming ill (as a result of working for you) – then you could be sued by the claimant.
Compensation may then be given to the claimant. This may incur a large amount of costs, including legal fees, compensation, hospital treatment and ambulance costs, etc.
Making sure you are protected and have the appropriate liability insurance is vital.
The Law…
Legally, an employer must have employers liability insurance and be insured for a minimum of £5 million. This cover must insure for all your employees throughout the UK.
However, there are exceptions.
If your business is not a limited company and you have no employees or you employ family members – then this is not compulsory. Limited companies that have only one employee, and own 50% or more of the shared capital, are also exempt from taking out employers liability cover.
It is important however to consider that many employers do take out this type of liability insurance as financial security.
Click here if you would like to download a guide from the HSE - Employers’ Liability (Compulsory Insurance) Act 1969
What does the Health & Safety Executive (HSE) say?
The Health & Safety Executive (HSE) is responsible for enforcing the law on EL insurance. You can be fined up to £2,500 for each day that you do not have appropriate insurance.
Generally, someone is defined as your employee if:
- they are under a contract of service
- you deduct National Insurance contributions and income tax from the salary you pay them
- you control when, where and how they work
- they cannot employ a substitute when they are unable to work
Many EL policies available in the market will contain a wide definition of employee that will cover most circumstances.
Wilby Top Tip
Your employers’ liability certificate…
Remember to display a copy of your employers’ liability certificate when you receive this documentation - whether this is on paper or electronically.
Further information regarding this can be found on the Business Link Government Advice website.
Please click here to be forwarded to this informative website.
Looking for Employers Liability Insurance?
Here at Wilby, we only select the insurers with the most appropriate employers’ liability policies to you and your business.
We can offer employers’ liability for many types of employers and businesses. For example:
- Tradesman Insurance
- Manufacturing Insurance
- Office Insurance
- Shop Insurance
- Restaurant & Pub Insurance
- Takeaway Insurance
Contact us now for a free quote and to discuss your requirements. You can give us a call on 01422 358 525 or click here to fill out a quick quote form.
HR and Employment Law Health and Safety…
Wilby also offer health and safety advice and guidance for businesses.
With highly experienced consultants – the Wilby Team are capable of assessing your needs, highlighting any shortcomings that exist in current policy and making appropriate allowances, ensuring any disputes that do arise cause the minimum amount of disruption to your business.
Click here for further information.
