Employers Liability Insurance
Employers Liability Insurance for builders, tradesmen, shops, office, cafes, restaurants, accountants, bookkeepers and engineers, liability insurance is legally required for any business that directly employs one or more members of staff, employers of cleaners and nannies need employer’s liability insurance too.
Employers liability insurance is legally required to provide a minimum level of insurance to protect the business from claims made by their employees, for example if an employee has an accident at work then the employee can claim on the companies insurance for medical treatment or permanent injury, illnesses caused by the work the employee does like asbestosis from exposure to asbestos or damaged lungs from exposure to paint fumes are both examples of long term illnesses that an employee might claim against the company for.
As an example, if an employee is exposed to a noisy environment and ear defenders have not been supplied then the employee could claim on the employee’s liability insurance for compensation for damaged eardrums as well as the cost of medical treatment, hearing aids and any other treatments needed.
Being a legal requirement all businesses employing (Business Insurance) one or more people require employers liability insurance if you are self-employed or a sole trader then you will not need employers liability insurance as long as there is just you in the business, if you employ a cleaner or a nanny then you will need employers liability insurance if the cleaner or nanny is directly employed by you and working in your home or office, if the cleaner or nanny is employed by an agency then you do not need employers liability insurance as the liability is with the direct employer who in this case would be the agency.
As a contractor, it is your direct employer who is responsible for your employer’s liability insurance, that might be a contractor’s agency or that might be your own company, if your own company then you are employing yourself under your own limited company and do need employer’s liability insurance, if the agency employs you then it is the agency who will need the insurance.
If you are a business and wondering if you need liability insurance then just ask yourself who is the employer, if that is you, where you directly pay the individual for work then you are the employer and must provide your employee with liability cover, if the individual is a contractor employed by another company or by an agency then it is that other company or agency that must have the employers liability insurance even if the agency or other company is a one person business.
Why You Need Employers Liability Cover
As an example of why you need employers liability other than the fact that it is a legal requirement, imagine an employee falling down the stairs at work, they might break a leg and be off work for a time incurring medical bills and wanting to claim for loss of income, the employee might then get depressed and be on long term sick leave, without insurance the employer would have to pay for a multitude of claims against the company from medical cover to loss of income, of course as the cover is a legal requirement you must have the insurance else you will be fined up to £1,200 per day for being in breach of the law.
Employers liability insurance will typically give the employer up to ten million pounds of liability cover, this should be enough cover for most firms but you can get extended cover if your industry requires it, for example if your company involves dangerous work or manual labour then you are more likely to receive a claim for liability than if you are an office, an example would be a company employing gardeners where the gardener may well hurt their back digging a more likely claim than an office where the claims will be fewer, that’s not to say that office claims don’t exist they certainly do with stress and mental health issues higher in office jobs than in manual labour employment.
How Much Does Employers Liability Insurance Cost?
From £50 a month you can get employers liability insurance, this very much depends on the number of employees in your business and the type of work, with office insurance cheaper than jobs at higher risk of injury like manual labour jobs or jobs involving hazardous chemicals.
What Does Employer’S Liability Insurance Cover?
Employers liability insurance covers your business from claims made by your employees for accident, injury or illness when the cause of that accident, injury or illness is your business, for example an employee falling down the stairs or being deafened by noisy equipment could make a claim against the company and it is the employers liability insurance that would pay compensation.
Do I Need Employer’S Liability Insurance?
If you directly employ one or more people then you need employer’s liability insurance, the test to decide if you need employer’s liability insurance is to determine if you directly pay that person, if you do then you need employer’s liability insurance, if you pay an agency or another company for that persons work then you do not need employee liability insurance the agency or other company must provide the insurance for their worker.
Does A Nanny Need Employer’S Liability Insurance?
If you directly employ the nanny then you do need employer’s liability insurance if the nanny is employed by an agency then it is the agency that needs the liability insurance, ask yourself if you pay the nanny directly or if an agency or other company pays that individual directly, if you pay the person then you pay the employers liability insurance.
Does A Cleaner Need Employers Liability Insurance?
If the cleaner is directly employed by you where you pay that person’s wages then you need to take out employer’s liability insurance, if the cleaner is paid by an agency or another company then you do not need liability insurance their direct employer does.
Does A Self-Employed Person Need Employer’S Liability Insurance?
If you are employed by your own company then you need your own employer’s liability insurance, if you are employed by an agency or umbrella company then the agency or other company need the liability insurance.
How Many Employees Do I Need Before I Need Employer’S Liability Insurance?
You only need to employ one employee before you have a legal requirement to obtain employers liability insurance, you have to display the insurance certificate on a wall in a publicly accessible area of your business premises, the kitchen or break room are popular places to display the insurance, the employee needs to be able to see the certificate so that if they chose to contact the insurance company directly to make a claim directly with the insurance company they may.
It's not just your employee who might make a claim for compensation on your liability policy but also other insurance companies, if for example your employee had their own private health insurance and the employee tripped at work and injured themselves the employee might use their own medical insurance for treatment but the medical insurance company might make a claim on your business to recover the costs of treatment for your employee, so it’s not just employees that can make a claim on your insurance but their insurance providers too.
Employers Liability Insurance (EL) claims can be settled in as little as 24 hours, for small claims made against your company you can submit the claim directly to your insurance and the insurance company will pay compensation as soon as the claim has been assessed, an example of a quick claim would be an employee claiming for chiropractic treatment for a backache caused by standing over a machine all day long, your insurance company might choose to reimburse the employee for treatment by paying the chiropractor receipts as they are presented to the company.
Liability Insurance Is Part Of The Employees Right To Health And Safety At Work
Liability insurance is part of the employees right to health and safety at work, it’s a legal requirement which allows the employee a certain minimum level of care should an accident , injury or illness befall them which is a direct result of their work for your company, for example the company uses a corrosive cleaning fluid but fails to provide gloves for the handling of the cleaning fluid or the fumes from the cleaning fluid causes respiratory problems, the employee will be able to claim against the liability insurance for treatment which if involving their lungs might be long term treatment due to illness caused at work.
You can buy employers liability insurance online in minutes, the insurance company will send you through on email the certificate that you must print out and display in your office, if you have accidentally let your insurance lapse you can be fined £1,200 per day plus have no insurance to counter any claims made against you, buy online quick and you have the insurance the very same day so your always be legal.
With ‘no win, no fee’ solicitors eager to take cases for compensation it’s vital that you have employer’s liability insurance and that you have adequate business insurance like legal cover, this additional insource will allow you to claim for any solicitors work that you need to have to fight a case brought against you by your employee.
Professional liability insurance is often confused with employers liability but this is a different type of insurance, if you are an engineer or accountant or similar professional the work that you do for client’s needs to be insured so that if you make a mistake and your calculations, consultancy or plans cause someone to be injured or killed then your client will be able to claim compensation against you, it’s the professional liability insurance that provides this compensation, without such insurance you would face significant claims personally.
Do Charities And Other Voluntary Organisations Need Employer’S Liability Insurance?
All organisations whether charitable, voluntary or company that directly employ one or more people need employer’s liability insurance, if the member of staff is directly employed by you then you must have liability insurance if the person is a contractor or agency staff employed by someone else then it is them that must provide the liability cover.
Do Temporary Staff Need Employer’S Liability Insurance?
If you are the direct employer of those temporary staff, then you must provide the liability insurance if the temporary staff are employed by an agency or other firm then that agency or firm will be responsible for the liability insurance.
It’s not only for the reason of your legal requirements that you need liability cover, without it you would be personally liable for any claims made against you by your employees, with claims for injury and continued health care costs and loss of earnings potentially awarded against you, you can’t afford to be in business without liability cover, it’s a legal requirement and your be fined £1,200 per day for not having liability insurance plus your be liable for any claims that occurred whist you don’t have insurance.
To protect themselves companies should keep an injury notebook, noting down any injuries, sickness or accidents that happen at work, then if an employee makes claims saying that several weeks ago, they tripped and hurt themselves at work and are now claiming compensation because of it you have a record of the accident and can log exactly what happened which it is fresh in the minds of those who witnessed the events.
Buy Your Liability Insurance Online For The Fastest Insurance
Buy your liability insurance online for the fastest insurance from specialist insurance companies that can process claims quickly and provide you with your liability insurance certificate in a matter of minutes, it’s easy to let your liability insurance expire but costly to do so with government fines at £1,200 and the possibility of claims made against you whilst you have no insurance, buy online and print your liability insurance certificate to stick on your office wall today, you can pay monthly by direct debit or you can pay an annual fee.