Employers’ Liability Insurance protects business owners if a claim is made by an employee who has been injured or fallen ill due to work. Essentially, if you have someone working for you, you must have Employers’ Liability.
It is impossible to predict or prevent all accidents from occurring and the Health and Safety of your employees is of paramount importance. By ensuring you follow guidelines and have the correct insurance in place, you can protect your business from a serious claim.
Employers’ Liability Insurance will help pay for compensation and cover the legal cost of defending and settling claims made. Policies not only include permanent employees, but also seasonal and temporary employees, work placements, and labour-only subcontractors.
It is important to note that individuals can still make claims even after they have stopped working for your business, for example if symptoms show months after their contract has ended. If a company has gone out of business, it may still be possible to make a claim for compensation directly through the insurer.
Employers’ Liability is a legal requirement as per the Employers’ Liability (Compulsory Insurance) Act 1969. You must have cover for at least £5 million and your policy must come from an FCA (Financial Conduct Authority) registered insurer, though most policies offer cover for at least £10 million. For every day that you are not properly insured, you can be fined £2,500. You can also be fined £1,000 if you do not display your Employers’ Liability certificate or refuse to make it available to inspectors.
There are a small number of businesses who are not legally obliged; most public organisations such as the Armed Forces, some organisations financed by public funds, family businesses that only employ close members of the family, and sole-employee businesses. For more information on exemptions, the HSE has a published list.
Like many policies, Employers’ Liability cost depends on several factors such as:
High-risk professions, such as Construction or Manufacturing, carry higher premiums. In addition, the cost does not depend on what type of employees you have, but rather how many there are.
Our Brokers have years of experience dealing with a wide variety of businesses and their unique Liability needs. Our access to a multitude of markets and products means that we can tailor policies for each individual business, regardless of size or sector.
We will protect your business, properly.
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Konsileo is a registered trademark of Konsileo Ltd (9569872). All insurance and risk advice is undertaken by Konsileo (Trading) Limited (10100499), an independent insurance broker authorised and regulated by the Financial Conduct Authority (FCA). You can check these details on the Financial Services Register by visiting the FCA’s website (www.fca.org.uk) or by contacting the FCA on 0800 111 6768. Our FCA register number is 748287.
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