Employers’ Liability Insurance is there to protect your business should something happen to your employees.
Whether you have just a single employee, a growing team, volunteers, interns, contracted or freelance workers, employers’ liability insurance is essential. It’s also a legal requirement for most companies that employ staff – regardless of size. You can be fined up to £2500 per day if you don’t have the right liability insurance in place.
As an employer, you are responsible for the health and safety of anyone working for you. If an accident occurs or an individual suffers an illness that they believe is your fault, they may look to claim compensation from your business.
The legal minimum requirement for cover is typically £5 million – but most insurers will offer up to £10 million. Compensation claims can be very high and the risk to your company will depend on its size and nature of business. The policy can cover the cost of not only any compensation payments but also the cost of the claim and legal expenses incurred.
Employers’ liability is most likely to be needed if:
- You own the equipment or materials being used and/or you own the work premises
- You are paying National Insurance for any of your staff
- You are in control of where and how your employees perform their duties
- They work under similar conditions and treatment to another member of your team who is covered by the insurance.
Once you have taken out employers’ liability insurance, you will receive a policy certificate which must be displayed in your workplace and visible to employees.