Employers Liability Insurance
Employers Liability Insurance
Employers’ liability insurance is the only legally required type of insurance for UK businesses. Any business that employs people, even if you are a self-employed person with employees, is legally obliged to have an employers’ liability insurance policy in place.
Employers’ liability insurance will cover the costs of defending your business and settling any damages awarded to an employee or ex-employee who claims they have suffered accident or illness due to their employment with you. This type of insurance when combined with public liability insurance ensures your business is protected against any potential financial losses in the wake of a claim from almost any source.
Employers’ Liability Insurance: The Legal Perspective
Employers’ liability insurance is legal requirement for businesses with employees. It was enacted under the 1969 Employers’ Liability (Compulsory Insurance) Act.
The legislation states that employers must have at least £5 million of employers’ liability insurance cover purchased from an authorised insurer. The risks of not having this insurance don’t only relate to the financial loss if a claim is brought, there are also legal implications. Businesses that do not have appropriate employers’ liability insurance can be fined up to £2,500 per day.
It is also a legal requirement that you have your employers’ liability insurance certificate on display and available for inspectors should they ask for it. Refusing or being unable to supply this certificate can result in further fines of up to £1000. The legislation respects that a physical copy many not be necessary as a 2008 amendment allows the certificate to be held electronically. You are still required to make it easily accessible to both your employees and inspectors.
Employer’s Liability Insurance Exemptions
There are a very small number of exemptions from this legislation. They include businesses that employ only close family members (as long as they are not incorporated limited companies). Exempted businesses also include some public organisations and bodies as well as some health service organisations. If you are not sure of your status for employers’ liability insurance it is something you should discuss with an insurer to guarantee you are operating within the law.
Obtain the best Employers’ Liability Cover with Just Quote Me
Any company that wants to be respected and accepted as a professional business needs to protect its staff. This includes former employees and good business owners should also want to protect anyone who comes into contact with their business. In this instance the focus is employees though, and employers’ liability insurance both protects your workforce and your business. Not having the legally required insurance in place is not an acceptable practice and the Health and Safety Executive and other governing bodies do have the powers to penalise businesses operating illegally.
To avoid any of this stress you simply need to have an appropriate Employers’ Liability policy in place. At Just Quote Me we work with many businesses guaranteeing they have every type of insurance they need to protect their business and their workforce. We strive to make the process of finding and selecting insurance as straightforward and easy as possible and have the skills and knowledge to ensure you get the right cover for your business.