If you run a business of any kind and employ people on a full-time, part-time or temporary basis, you have a responsibility towards their health and safety. Employers’ liability insurance is designed to provide you with financial cover should an employee suffer an injury or illness that could be considered your fault and decide to make a claim for compensation.
Why you may need employers’ liability insurance
Employers’ liability insurance is a legal requirement for anyone who employees staff. If you have a business that employs people, no matter how small your business or even if you only have a couple of employees, you must have this insurance in place. Note, there are a few exceptions to this rule.
If you do not have it in place, you could be fined a considerable amount of money as a result.
The reason for this is that you have a duty of care towards your employees, and accidents can happen anywhere. Even a trip on a loose bit of carpet could be the basis for a claim for compensation that could end up costing you a lot of money.
This can clearly lead to serious financial problems for you and your business. Even if you are very careful and follow all the relevant health and safety guidelines, things can still go wrong and it can be difficult to prove that you were not in the wrong.
This type of cover is necessary in any type of business, but it can be even more essential in high-risk areas like construction.
It should also be remembered that it is not only required for full-time and part-time employees, but also for contractors you hire, temporary staff and even volunteers.
What does it cover?
The main cover that this type of insurance provides is legal costs should an employee make a claim for compensation, as well as any claim that is successful.
You may find that court attendance compensation is covered, and this may come with a per-day limit.
It may also be the case that you are offered various other types of insurance along with this, including things like public liability cover, professional indemnity cover and personal accident cover.
Things to look out for
There are many factors to keep in mind when taking out this type of insurance. These include:
- always try to choose a provider with experience in this area. You may want to use the services of a broker working with a number of providers in order to get a more suitable policy for your needs;
- the cost of the policy may be affected by various factors including the number of employees and the level of cover you require;
- other aspects that can affect your cover include the length of time you are trading, the type of company you run, whether you have had any claims over the last five years, and the amount of cover you need;
- there are also some exemptions when this cover is not legally required, such as for limited companies that employ one person who owns more than 50% of the company.
Do you need this insurance?
As well as being a legal requirement in most situations, employers’ liability insurance gives you the peace of mind in knowing that you and your business are protected should a claim be made against you. No matter how careful you are to avoid accidents, it is still a requirement that you should not overlook.
