Do I need Employers Liability Insurance? YES you most probably do if you employ people.
This question may seem simple but let’s delve a little deeper as the answer is not so simple! This insurance protects your staff, no matter what, so consider the following information carefully.
In the United Kingdom, it is the law that you must get Employers’ Liability (EL) insurance cover as soon as you become an employer of staff. In addition you must now get a policy with cover for at least £5 million.
The insurance should be from an authorised insurer too so there is a lot to think about already, but what else is there to think about?
Employers Liability insurance will help you to pay compensation if an employee should be injured during their work or if they become ill because of the work that they have performed for you.
Providing sick-pay to a member of staff that has suffered due to their job is simply not enough these days! There is a lot more that you need to do as you most probably know, such as offering help and counselling where necessary too!
If you only employ a family member of friend, or someone that is not based in the UK, then you may not need Employers Liability cover – but only in those circumstances.
You can be fined if you do not have this type of business insurance cover
It is a fact that you can be fined £2,500 for every day you are not properly insured with this cover.
You can therefore imagine that if you went a month or two without it the company could be bankrupted! This is why, especially for small businesses that do not have much in the way of available cash, this is a no-brainer!
Display your EL certificate or be fined
You can be fined £1,000 if you do not clearly display your Employers Liability certificate or if you refuse to make it available for inspection by the authorities appointed inspectors should they ask to see it!
Therefore we recommend that you protect your business ASAP and get EL cover
You would not want to find yourself in any of the positions above, as they could result in large fines, so we suggest that you investigate getting appropriate EL cover if you do not already have it.
For any small business it is simply not worth the risk of not being protected. The whole idea of the cover is that employees that suffer due to their job are looked after no matter what. This is a noble cause which all companies should do their best to help with we are sure!
SMEs could go under without this protection!
Many companies would not be able to pay out the costs of such a claim so that is why this law, which may seem a little draconian, is in place. It is all about looking after employees, without them you would most likely have no business at all so think on that!
It is in place to protect your staff if they suffer due to their work so get with the program.