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  1. If you have your own business, employers’ liability insurance is a key type of business insurance that you will need in place. Indeed, most employers are actually legally obliged to have this type of cover.

What is employers’ liability insurance?

Employers’ liability insurance is specifically designed to cover any costs you may incur if an employee made a claim for compensation for illness or injury’ that they believe has been caused at work, because of your business. If a claim was brought against your business and you did not have employer’s liability insurance,then you may find it difficult to cover the costs.

If a compensation claim is brought against you, then the court may order you to pay compensation for injury, costs and other damages; the compensation figure can take into account costs including medical bills and loss of income, which can make it a very expensive process. Employers’ liability insurance can cover the compensation payment as well as the legal costs, up to the limit of the policy, protecting you in case of a claim.

Do I need employers’ liability insurance?

Most employers are required to have a minimum of £5 million of employers’ liability cover, or risk facing a fine of up to £2,500 a day. Some organisations are exempt from this legislation, including businesses that only employ close family members, however even if your business is exempt, employers’ liability insurance is often still a good idea, as compensation claims can be extremely high and this type of insurance offers you the protection you need.

Employers’ liability insurance is a legal requirement for almost all businesses that have employees, however the definition of what an actual employee is, can get a little confusing. If you aren’t sure about whether you need this type of cover then we highly recommend you seek advice to find out if it is a legal requirement for you or not.

If you need some advice or are interested in a quotation, then give one of our expert advisers a call on 01625 562389 and they can find you’re a tailored policy fitting you and your businesses unique needs.