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 suffer an illness such as noise induced hearing loss, or breathing difficulties, as a result of work they undertook while in your employment.
It is important to follow the law, because if you do not hold EL insurance and you employ staff, the Health and Safety Executive (HSE) can fine you £2,500 for each day you are uninsured.
EL insurance covers your business if one of your staff members claims they have suffered an illness or injury because of working for you. The policy covers legal fees and compensation costs involved in defending the case.
Cover provided by EL can include medical costs, legal costs, loss of income, as well as other damages awarded.
There can be a great deal of misunderstanding when it comes to business insurance policies and what they cover.
Employers’ liability insurance will only cover you for accidents and injury to your employees. It will not respond to claims made against you from the general public if they have an accident on your premises or if you accidentally damage their property. For that you will need public liability insurance (PL).
Nor will EL insurance provide cover for allegations of negligence in your work. For that you will need professional indemnity insurance (PI).
Find out more about the differences between these policies here.
Any business which employs staff, regardless of size. You will need it if:
The cost of any insurance policy depends on your level of risk. At Caunce O’Hara we offer employers’ liability insurance as part of a combined liabilities package, which includes public liability insurance (£1million of cover), employers’ liability insurance (£10million of cover), general contents insurance, portable equipment insurance, and directors’ and officers’ liability insurance. Cover price for this package begins at £112.00 per annum*.
* The annual price quoted is based on a marketing consultant with a turnover up to £50,000 per annum, requiring the abovementioned covers, and with no claims history and meeting all underwriting criteria.
There are a number of key points to consider when choosing your EL cover, including:
The level of cover required – We offer EL insurance at £10million of cover as standard as part of our business combined liabilities package.
Your business activities – Some insurers may offer EL insurance at the legal minimum of £5million of cover, which may reduce the price of the policy. Before purchasing a policy based on price you should consider your business activities and ensure they are fully covered. Less cover and a cheaper premium may mean some of your key activities are excluded from cover.
You are adequately compensated for loss of work – This aspect of cover could be important if you have to attend court which could result in you losing valuable work days and could impact your income.
The reputation of the insurance company – When arranging your insurance you’ll want to be sure your policy will pay out when you need to make a claim. It’s prudent to do some due diligence prior to buying your cover by looking at the insurers testimonials.
If all your employees are immediate family – According to government legislation, if you only employ family members you may not need employers’ liability insurance. Check with your insurer first before deciding not to purchase cover or deciding to cancel your existing cover.
The insurance limit refers to the maximum amount you can make a claim for, based on your EL policy. The legal minimum requirement of cover is £5million. At Caunce O’Hara we offer employers’ liability insurance with £10million of cover as standard.
Other policies to consider include:
Click the ‘Start Your Quote’ button for a quick online quote for your business insurance.
Protects against claims of alleged negligence in your professional services, advice and designs.
Protects against claims of injury to third-parties or damage to a third-party's property.
A legal requirement for anyone employing staff. Protects your business in-case an employee is injured at work.