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.