If you employ staff, whether from a business premise or your home, employers’ liability coverage is mandatory. If you choose not to take out the insurance, you could be subject to a £2,500 fine for every day you don’t have it in place.
In addition to this potential fine, you could also incur an additional fine of up to £1,000 if you fail to display your certificate of insurance or present it to Health and Safety Executive inspectors when asked.
Most importantly, regardless of the fact that employer liability cover is a legal requirement, it makes sense to be prepared and cover yourself against any potential disputes with employees – even if you have a great working relationship with all your staff, you could still find yourself on the receiving end of a law suit.
Most businesses take out an average of £10 million worth of cover, but you should take out at least £5 million worth of cover – this may sound excessive, but it’s actually the minimum level of cover required by law. In cases of high risk, you may need to take out cover for an even higher amount. If not, you face the risk of losing your assets, and in the worst cases, being put out of business.
The good news is that, when you compare employer’s liability insurance with us, we take away all the hassle to help find cheap deals that won’t put you out of pocket, but will offer all the protection you need.
Is employers’ liability insurance the same as public liability insurance?
Although similar in what they cover, employer liability differs from public liability cover in who it focused towards.
Employer liability insurance is centred on current, past and future employees, while public liability, is focused on third-party compensation claims, which are those made by non-employees.
When you compare employer liability insurance deals, it’s incredibly important to state how many employees are in your business. You’ll need to break this down into the numbers of clerical and manual staff, including temporary, part-time and casual staff too.
As mentioned, it’s also important to note that work-related illnesses can be discovered at any time – whether or not the person in question is still an employee. Employers’ liability coverage does take this into account, but you’ll need to keep copies of your insurance documentation, even after it has expired.
Staying on top of your insurance is the best way of avoiding expensive legal fees. Ensure you give your Employer Reference Number (ERN) to those in charge of your cover, as this will grant them access to your employee records, meaning they can provide you with the right type of cover.
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