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Compare employer’s liability insurance quotes

As a business owner, you’ll know that each day can bring a completely new situation – especially where your staff are concerned. Sometimes these situations can be unexpected and so out of the ordinary that they can be costly or affect the way your business functions. Whether that’s a fire in the office, your boiler breaking down or work-related illnesses, you need to have adequate cover.

2 min read

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What is employers’ liability insurance?

Employers’ liability insurance, as the name suggests, provides cover for anyone who employs staff to help run their business – whether full-time, part-time, or casual. Illnesses and injuries that happen at the work can often result in lawsuits, claims and expensive settlements, especially if they are deemed to have occurred as a direct result of being in the workplace. Employers’ liability insurance is therefore important to ensure your business continues to function – even in the case of a long-winded legal dispute.

Illness-related claims can be made at any point, with work-related health issues often presenting after a member of staff has left the company, and so employer liability coverage is necessary to cover against disputes both past and present, as well as any that might arise at a future date.

A good example of an historic employer’s liability claim is the high number of asbestosis cases relating to pre-1980 employees which were only brought to court in the 2000s.

Is it a legal requirement to have employers’ liability insurance?

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.

When do you need employers’ liability insurance?

As mentioned, employer coverage is mandatory for nearly all businesses. If you deduct national insurance and income tax contributions at source from your employees’ wages, you’ll need this insurance. It’s also mandatory if you provide most of the equipment and materials your staff use for their role.

Employer’s liability insurance is also necessary for any business which has the right to claim any profit made by employees, employs part-time and temporary staff, or has employees who aren’t in charge of finding a substitute when they are unable to work.

While it’s rare for a business to not need this type of insurance, there are some situations where you may be exempt. If you run a limited company with only one member of staff who owns more than 50% of the shares, you’ll likely not need cover. For sole traders and other non-limited companies, employer liability coverage will not be needed, providing you have just one employee who is the principal of the business.

Companies with directors as equal partners and no further employees are also exempt, as are most public health organisations, health services, governmental bodies. The same is true for family-run companies where all employees are directly related.

How to compare employers’ liability insurance quotes

No business owner wants to overpay for business insurance, nor do they want to be left without adequate cover in the event of a claim. At Uswitch for Business, we understand the importance of getting the right cover at the right price.

The simplest way to run an employers’ liability insurance quote is to tell us what you’re looking for and we’ll compare cover for you, removing all the hassle of dealing with insurers and allowing you to get on with the day-to-day running of your business. To get started, give us a call on 0800 188 4930, or leave a few details at the top of the page and we’ll call you back.

What is employers’ liability insurance?
Is it a legal requirement to have employers’ liability insurance?
When do you need employers’ liability insurance?
How to compare employers’ liability insurance quotes

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