Taking care of your employees is an essential part of your job, but despite careful planning, knowledge and industry experience, you cannot be everywhere all the time and accidents will inevitably happen.
Employers' Liability is compulsory by law but this doesn’t mean it needs to be expensive. At Be Wiser, our advisors can help you find the best deal by choosing from a variety of schemes from the top insurance providers in the UK. We want to ensure that whatever your business, you are prepared and protected in the best way possible.
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Employers’ liability insurance (EL) will help you pay compensation to employees who get injured or fall sick as a result of your business activity. Employees may get hurt completely by accident or as a result of their work being mentally or physically demanding. However, if any damage caused is directly as a result of the work they are doing for the company, the employee has the right to sue, claim or demand compensation. For this reason, it is important for companies to have EL as a way to protect their employees and business interests.
Examples of events that would require employer’s liability insurance include a an individual having a fall at work as a result of a faulty ladder provided by the company or an employee suffering side effects from materials used in the manufacturing process.
To highlight the importance of employer’s liability insurance, it is compulsory for all companies with employees in the UK to have a policy in place. In fact, the government can issue a daily fine of £2,500 to companies that do not have an active policy and a £1,000 fine for firms that do not display their EL certificate or make it available upon request. The fines can be backdated so it’s crucial that there is never a period where you don’t have a policy active. It is also important to keep the certificates of old policies because former employees are able to make claims in the event that some illnesses or injuries take a long time to emerge.
All employees, paid or unpaid that have hours and their location determined by the company are covered by employer’s liability insurance. A typical policy therefore covers employees that are full-time, part-time, freelancers, contractors, temporary staff, students and volunteers.
Although employer’s liability insurance is compulsory by the government, there are some companies who are exempt. For instance, a company that does not have any employees does not need to be covered – including freelancers and sole traders. This means that an individual, who simply sets up a company via Companies House, doesn’t need to worry on day one about getting a policy or being fine.
In addition, those family businesses that only employ family members are also exempt from having an employers’ liability policy. Examples include family run restaurants and shops. There is a way to check if your company is exempt through the Health and Safety Executive website.
The policy you take out for your small or medium size business must provide cover for at least £5m and some businesses may require up to £10m.
The employers’ liability insurance cost for your company will depend on a number of factors:
Type of business – depending of your industry and the risks to employees will affect the premium you pay as a company. Those lines of work which involve heavy machinery, chemicals and manual labour may require a higher level of cover compared to office jobs which only need a lower level of cover.
Size of your business – how many staff you employ will impact the cost of your employers’ liability insurance. A company that employs hundreds of staff may be at a greater risk of an accident compared to a small enterprise with a small office and few staff.
Company history – how long the company has been trading for and how often claims have been made in the past will allow us to find the best level of cover to suit your needs.
Be Wiser can help you find the best employer’s liability insurance quote for your business. Whether you own a hair salon, doctor’s surgery or restaurant, we will assess your company details to find the best quote for you across a number of leading insurance providers in the UK. To get started, simply enter your details and one of our advisors will come back to you with a competitive quote.