Why do I need Employers’ liability insurance
Employers Liability Insurance protects employers from claims of negligence made by employees who suffer injury or ill health due to their work, policies can also protect employers against theft from employee dishonesty. Unlike most other types of insurance, Employers’ Liability Insurance is compulsory if you employ workers based in England, Scotland or Wales (including offshore installations or associated structures), your company must carry Employers’ Liability Insurance to avoid substantial fines
You can be fined up to £2,500 for every day you do not have appropriate insurance.
Some businesses are not required to have employers’ liability insurance, including:
- companies with no employees
- family businesses that employ only family members
What is Employers Liability Insurance?
Your policy should cover claims brought by:
- all permanent employees
- contract, casual and seasonal employees
- labour-only subcontractors
An employee is someone:
- who has National Insurance contributions and income tax deducted from their salary
- whose location, hours and conditions of their work are controlled by their employer
- who cannot be replaced by their employer if they are unable to work
Your policy should also cover claims brought by:
- temporary staff, including students and people on work placements
- volunteers, advisers, referees and marshals
Check with your insurer to make sure your employers’ liability policy covers everyone who works with your business.
Employee claims for injury or illness
If you are an employee and you have suffered an injury at work or become ill as a result of your job, you should speak to your employer who will contact their insurer about making a claim.
If the company you worked for has gone out of business you may still be able to make a claim for compensation directly through the company’s insurer. You can trace your former employer’s insurance provider through the Employers’ Liability Tracing Office (ELTO).