If you are an employer and you’re employing someone on a permanent or casual basis, it is your responsibility to make sure your employees are protected. There will be a legal requirement for you to have employers’ liability insurance.
If you employ someone who is not a direct family member, by law, you must have employers’ liability insurance. This also applies even if you only have one member of staff. The cover will protect you should an employee decide to make a claim against you as a result of illness or injury.
We’re going to outline the importance of employers’ liability insurance below.
Employers’ liability insurance is there to protect employers against claims made by their employees should that person have an incident at work relating to them becoming ill or injured due to working for them.
The cover even extends to former employees who are no longer working for that employer, but they may also have become ill or injured due to the workplace environment. However, former employees will need to provide evidence to demonstrate that it was due to the previous employer’s negligence. Even if you no longer employ anyone, it may still be worth checking to see if you require cover.
The Health and Safety Executive (HSE) has stated clearly that: “It is an employer’s duty to protect the health, safety and welfare of their employees and other people who might be affected by their business. Employers must do whatever is reasonably practicable to achieve this.”
You can find out more about the HSE at: http://www.hse.gov.uk/
Unfortunately, work related injuries still take place every day throughout the UK. Even with health and safety guidelines and procedures being followed, incidents are bound to occur at any given moment.
It is estimated that there are more than 60,000 injuries to workers, and 75,000+ workers who suffer from a work-related illness each year just from the construction industry alone.
Across all sectors, it is estimated that more than 1,800 workplace injuries take place for every 100,000 workers. That’s almost 2 people out of every 100. These stats are alarmingly high. It’s of utmost importance that you have sufficient cover, no matter what industry your business is in.
Another thing an employer need to carefully consider is health and safety regulations in the work place. Are you up to date with the latest rules and regulations? If not, your employers’ liability cover may be void, meaning you won’t have the necessary protection in place should an accident or incident take place.
You will need to ensure you have sufficient cover if you employ staff on a permanent or casual basis, and for the following criteria:
There are exclusions which include the following:
There are also some instances where employers’ liability insurance will not be required. These extend to the following:
If you’re unsure whether you require cover, we strongly recommend that you visit the HSE website. It’s imperative that you receive the right advice and guidance.
An employers’ liability insurance policy must cover you for a minimum of £5million.
You will also need to think about what level of additional cover you may require depending on the type of business you’re operating in. For example, a building or construction business may require more cover in comparison to an office-based business.
Generally speaking, those working in a construction job are at a higher risk of being severely injured compared to someone pressing on a QWERTY keyboard for 8 hours a day, if health and safety procedures are not followed strictly.
Like with all insurance policies, those that carry an increased level of risk will be more expensive, as there is a higher likelihood of a claim being made. Regardless of the above, it’s important to remember that it is a legal requirement that you have sufficient cover in place should anything unexpected happen.
If you fail to have a sufficient level of employers’ liability insurance, there are likely to be serious consequences as you are breaking the law.
Did you know you could be fined £2,500 for each day that you do not have cover? You could also be fined £1,000 for not displaying your ELCI (Employers’ Liability Compulsory Insurance) certificate, or by not showing it to an inspector upon request. Depending on the nature and scale of your business, these fines could potentially be significantly higher.
It’s quick and easy to compare employers’ liability insurance through Utility Saving Expert.
Simply enter a few details about your business and we’ll help you find a range of quotes from leading UK providers. You’ll be presented with a list of options to choose from, allowing you to filter the results to meet your business’ requirements.
After finding the right policy for your company, you’re able to apply through our website directly. Alternatively, you can speak to an expert by calling 01242 32 31 31.