Any business that employs staff are legally required to have employers’ liability insurance. The definition of staff includes volunteers, work experience placements and sub-contractors and having this kind of insurance is not an option in the UK, it is essential.
The Employers’ Liability (Compulsory Insurance) Act 1969 lays out the exact terms of insurance required. It states that employers are responsible for the health and safety of employees while they are at work. If an accident should occur in the workplace and an employee be injured, they may be in the position to claim compensation against the business. As well as injury, employers are responsible for ensuring employees do not become ill or their property become damaged due to their work.
If an employee makes a claim against their employer and they win, both legal fees and compensation must be paid. Without insurance in place most businesses would not have the funds to do this and therefore, compensation is an essential protection for both parties.
Protection for Businesses and Staff
Employees are at risk of accident at any time. In almost all instances there is no fault on any part, but in the instance that there is, businesses need to be prepared. Slip and trip accidents are amongst the most common in the workplace and high-risk industries such as construction and those dealing with hazardous materials need to be especially mindful of having the right cover in place.
The Employers’ Liability (Compulsory Insurance) Act 1969 states that companies must have at least £5million worth of cover for their employers liability insurance. However, you will find that most companies offer insurance premiums of a minimum of £10million.
Risks of No Employers Liability Insurance
Almost all businesses with employees must have this kind of insurance. There are exceptions such as if you only employ close family members and a few other instances. Trading without employers liability insurance is a huge risk. Heavy fines are the most common form of penalty, with fines of up to £2500 for every day of trading without adequate insurance cover.
Compare Employers Liability Insurance Quotes
Employers liability insurance is essential for all businesses but different companies do offer different levels of cover. At Just Quote Me we can help you compare employers liability insurance quotes and get the right cover for your business with ease.