Employers are responsible for the health and safety of their employees while they are at work.
Your employees may be injured or suffer disease whilst in your employment, or your former employees may contract a disease such as Noise Induced Hearing Loss as a result of work they undertook while in your employment.
Employers Liability insurance (EL Insurance) is a business insurance policy that covers the cost of defending or settling a claim against you from an employee who has suffered injury or disease as a result of the work they do for you.
The policy will enable you to meet the cost of compensation for your employees’ injuries or disease.
Cover can include medical costs, legal costs, and loss of incomes, as well as any other damages.
This could be an employee falling from a ladder who hasn’t received the correct training. It could also be an employee working on a production line for hours without a break. The employee may suffer a repetitive strain injury as a result.
If a former employee starts to show symptoms that have been the result of the work they performed for your business, this may also be covered. You should check your policy documents carefully to confirm this.
It is a compulsory insurance requirement under the Employers Liability Act (1969) and is a criminal offence not to carry cover if you employ staff. The legal minimum of cover is £5,000,000. Caunce O’Hara provide £10,000,000 cover as standard as part of our Business Combined insurance policy.
Who needs Employers Liability insurance?
Employers Liability cover is required by law for most businesses. You will need it if:
- You deduct Income Tax and National Insurance Contributions from the money you pay your employees.
- You have control over where and when your employees work.
- You have the right to claim profit made by your employees.
- You provide the equipment and materials your employees use.
- You need them to perform the job you employ them for and if the employee is unable to provide a substitute if they are unable to work.
- You have part-time or temporary employees.
Are there any exemptions from Employers Liability insurance?
Employers Liability cover is not usually required if:
- You are a limited company with only one person employed and that person owns more than 50% of the share capital.
- You are a sole trader (not a limited company) who is the principal of the business.
- You work in a Partnership where the directors are equal partners and do not employ any staff.
- You are a company where all the employees are direct family members.
What does Employers Liability insurance cost?
Employers Liability insurance costs from as little as £112.00 per annum for £10 million of EL cover and is included in our Business Combined insurance policy. The policy also includes £250,000 of Directors & Officers Liability cover (which can be extended to £1 million) and £1,000 of portable equipment insurance (which can be extended to £5,000).
What are the penalties for not having Employers Liability insurance?
If you fail to have Employers Liability insurance in place when it is legally required, you run the risk of a hefty fine. For every day that you do not carry EL insurance you can be fined up to £2,500. If you do not have a certificate of insurance that is accessible by staff or refuse to make it available to HSE inspectors when they ask for it, you can also be fined up to £1,000.
If you would prefer to speak to one of our team for a personalised public liability insurance quote please call 0333 321 1403
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