The purpose of Employers liability coverage is to give your company protection in case an employee sues you for injury or sickness caused by their work. This includes volunteers, part time members of staff and people on work experience. In 1969 the government brought in the Employees Liability compulsory insurance act that made this law.
Even if the injury doesn’t show itself for several years. It covers the payments to be made to your employee plus any legal costs associated with a claim.
Employers Liability does not come on its own, it comes combined with Public Liability insurance. Most of the time you will need to take out a Public Liability Insurance with Employers Liability coverage added on to it.
If you employ anyone in any capacity – it is a legal requirement to cover them for employers liability.
If you are a limited company with more than one sole director, be that either additional employees or additional directors you will also need to have employer’s liability.
There are some exceptions to the rule. If your employee/other director is a direct family member, if you are a partnership, if your employee is an official Subcontractor.
Should an employee get injured, you would have to fund the potential claim yourself, which can be very expensive if you have to go to court. The Health & Safety Executive (HSE) would then fine you. You can be fined up to £2,500 per day that you have not held the correct level of insurance. This can be back dated to the point you should have held it. That would mean the potential fine for a years’ worth of incorrect insurance would be just shy of £1,000,000.
If you are unable to produce an Employers Liability certificate to your employees, this also carries a fine of £1,000.
To protect yourself against hurting the public or damaging their property, you need Public Liability Insurance. This is an important cover for all businesses that deal with the public.
If you give advice as part of your work, we can financially protect you for claims against your professional indemnity. Crucial cover for those in service industries, and professions who are paid for their advice and knowledge.
If you own a business property and rent it to out, or you do your own business in it – Commercial Property Insurance is the right choice.
If you have multiple vehicles, it might be better value to insure in a single fleet policy. This could save you time and money with one policy, and one renewal.