Employers Liability Insurance

Employer’s Liability Insurance indemnifies employers to pay compensation for claims made against them by employees. This is required under the Common Law for personal injury or death by accident arising out of and in the course of the employment. It is there to protect employees if they are injured or fall ill as a result of working for your business and is a legal requirement under the Employers’ Liability Act 1969. This generally covers:

  • Full and Part time employees
  • Self-employed contractors you hire
  • People undertaking training or work experience
  • Temporary staff and volunteers

The cost of remuneration to an employee can be high, therefore the minimum legal requirement is £5 Million of cover. Fortunately Employers Liability insurance is generally fairly cheap compared to other policies, however it is crucial to ensure you have the appropriate level of cover for your companies type and size. There are exceptions for when you do not require cover such as:

  • You run a family business that is not limited

    Family is defined as: husband, wife, civil partner, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister. However if it is a Limited Company you will require cover regardless of relations.

  • The company only employs independent contractors that are self-employed.

Both of these scenarios can be difficult to know whether they apply to your companies situation and it is recommended that your check with your broker as to whether you require cover or not as the fines can be significant. Up to £2500 for each day you are uninsured.

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