As an employer, you are responsible for the health and safety of your employees. So, if something goes wrong, having liability insurance is essential to allow you to cover costs where you are liable for an employee\u2019s injury or illness. If you do not have liability insurance, you could potentially be fined \u00a32,500 for each day you are without it. Therefore, it is vital that you fully understand Employers\u2019 Liability insurance and why it is a legal requirement.<\/p>\n\n\n\n
Employers’ Liability insurance is compulsory insurance as soon as you become an employer. So, when your employees carry out their work in the UK, you will need insurance unless you meet one of the exemption criteria.<\/p>\n\n\n\n
Employers\u2019 Liability insurance is necessary when your employees are under a contract of service<\/a> or when they are an apprentice. Where you have control over your staff regarding what they do, you are likely to require insurance. This includes, for example, volunteers and temporary employees.<\/p>\n\n\n\n Importantly, you must get your Employers\u2019 Liability insurance through an authorised insurer. If your policy is not through an authorised insurer, you may be breaking the law.<\/p>\n<\/div>\n\n\n\n Employers\u2019 Liability insurance can be a single policy or more than one policy that covers you for a total of at least \u00a35 million. This figure can cover a group of businesses where yours is part of one. However, you may need to have cover for more than \u00a35 million depending on your business’ risks and liabilities. Notably, many policies cover a minimum of \u00a310 million.\u00a0<\/p>\n\n\n\n Additionally, there are exceptions where you do not need to obtain Employers\u2019 Liability insurance. This is where the only person or people you employ work abroad. Alternatively, your employees may be close family members such as your:<\/p>\n\n\n\n However, you are not exempt if these employees are part of a family business incorporated as limited companies. Also, where your employee normally works abroad but comes to the UK for more than 14 days in a row or for more than seven days in a row when on an offshore installation, you must have Employers\u2019 Liability insurance. Further, where your only employees are based abroad, and you do not need insurance for them, you should note that the law in the country they are working in may require you to have some other form of insurance.<\/p>\n\n\n\n You are also not required to have Employers\u2019 Liability insurance if your business only employs you as an employee. Likewise, you own at least 50% of the issued share capital of your business. <\/p>\n<\/div>\n\n\n\n Most public organisations do not require Employers\u2019 Liability insurance, and neither do health service bodies and some public-funded organisations.<\/p>\n\n\n\n During the course of your business, there may be times when an employee or former employee becomes unwell. It may be a result of their work with you or where they have an injury as a result of it. In these situations, it is essential to have Employers\u2019 Liability insurance.<\/p>\n\n\n\n Legally, you are responsible for the health and safety of your employees<\/a>. Therefore, if they believe you are responsible for their injury or illness, the insurance allows you to pay them compensation. In addition, insurance can also cover the cost for you to defend any case against you regarding the cost of the claim and legal expenses.<\/p>\n\n\n\n You must ensure that your Employers\u2019 Liability insurance is on display in a place where your employees can easily see it. This can be in electronic format. There is no requirement to put your insurance certificate on display on each offshore installation or associate structure where you have employees working on these. However, if they request to see it, you must let them see it as soon as possible with a maximum of ten working days. You must also show it to inspectors who request it. If you do not, you could receive a fine of up to \u00a31000.<\/p>\n\n\n\n Notably, liability insurance doesn’t cover any illness or injury resulting from motor accidents whilst at work. Where this cover is necessary, you should seek insurance cover from a separate motor insurance company. Likewise, Employers\u2019 Liability insurance does not protect you when a member of the public claims against you. Instead, public liability insurance will cover you.\u00a0<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nExceptions<\/h3>\n\n\n\n
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Why Does an Employer Need Employers\u2019 Liability Insurance?<\/h2>\n\n\n\n