Employers’ Liability explained
Employers’ liability insurance protects you in the event that one of your employees decides to make a claim against your business as a result of injury or damage suffered in the workplace.
Who needs Employers’ Liability Insurance?
If you employ any staff, you may be legally required to have employers’ liability insurance as outlined by the Employers’ Liability (Compulsory Insurance) Act 1969. This includes employees, contractors, casual workers, temporary staff or volunteers, with at least £5 million of cover in place. Failure to not be properly insured could result in a significant fine.
For further information on employers’ liability legislation visit the UK government website
What does Employers’ Liability Insurance cover?
Employers’ liability insurance could cover your legal fees and costs if an employee made a claim against you for work-related illness or injury, for example if they slipped over and injured themselves on a wet floor in your shop. If this leaves them unable to work for a period of time they may claim against your business for the money they have lost.
With employers’ liability cover you will get a certificate, which you must either display or make available to inspectors when they ask. If you do not, then you could be fined £1,000.
How much is Employers’ Liability Insurance?
Costs can vary for employers’ liability cover depending on things like the nature of business and the number of people employed. The best way to find out how much your insurance will cost is to get a quote.
Can a former employee make a claim against you?
It is possible that a former employee may claim compensation as some illnesses take time to manifest and show symptoms. Depending on your insurer, employers’ liability insurance may cover this, but to keep yourself protected you should retain on file all documentation related to your cover, even if it’s expired.
If someone makes a claim against you or your business, it is very important you tell your insurer about the claim, with full details, as soon as possible.
Who offers Employers’ Liability Insurance?
There are many insurers who offer employers’ liability insurance, either as a stand-alone product or combined with another cover such as public liability.