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Employers liability insurance is a tricky subject when it comes to self-employed workers or freelancers. A frequently asked question we get is if your business only works with people who are self-employed, do you need to cover them?
In the workplace, if a member of your staff becomes ill or is injured as a result of working for you, then employers liability insurance covers you for the compensation that you will need to pay out to the employee. It also covers the legal costs related to the claim being made against you.
It’s also very important to remember that this cover is a legal requirement, if you have employees, you must have this cover. Without it you could face fines of up to £2,500 for every single day that you do not have cover.
The definition of an employee according to HSE is someone whose national insurance and income tax payments are arranged by the employer.
Based on this, someone who is self-employed isn’t actually your employee as they are responsible for those contributions themselves.
So if you only work with people who are self-employed and have no other employees, then employee liability insurance is not a legal requirement for your business. However, there is a difference between workers who are self-employed and do not work at your premises or use any of your equipment. If they do, then you are still responsible for their health whilst in the workplace.
This means that should anything happen and they become injured or ill as a result of the workplace or equipment they use from you, you could be liable and have to pay out compensation or damages yourself. If you have self-employed workers working in your office or using your equipment we would recommend having cover.
Business insurance can be costly and naturally, you’ll be looking to make savings on your policy whilst still ensuring you have the cover you need. That’s where we at Be Wiser Business Insurance comes in. We work with the UK’s leading insurers to get quotes, and then compare prices to get you the best deal. You can get a quote online in minutes today, and we’ll do all the work for you.
Author: Be Wiser Business Insurance.