Employers liability insurance is required by law for most businesses. It provides financial protection to cover compensation awards for injury or damage suffered by an employee, volunteer or freelance worker.
Just as importantly, it provides you with the peace of mind that you’re protected in the event that anything happens to someone working for you – and reassures your staff that you take their safety and welfare seriously.
A duty of care
Almost every business will need some form of public liability insurance cover. Accidents can happen – and without adequate insurance, can be extremely costly. Anyone who visits your premises and suffers an injury or loss as a result of your business can claim compensation.
If a customer or member of the public makes a claim against your business for compensation, public liability insurance is designed to cover the legal fees as well as any compensation payment awarded. Even if your deemed not to be at fault, the costs can be significant.
Unlike employers’ liability insurance, it’s not a legal requirement to have public liability insurance. However, as a business owner, you have a duty of care to anyone visiting your premises. And the cost of not being properly insured if an accident occurs could financially ruin your company – and your reputation.
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:
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.
