Understanding Employers Liability Insurance

As an employer you have a legal responsibility to ensure that you have provided safe and secure surroundings for your employees which includes the provision of Employers Liability Insurance. If an employee has an accident or becomes ill while performing their job or as a result of something your business has done, then then they may claim against your business for compensation.

Employers Liability Insurance covers your business for damages and compensation payouts, as well as related legal fees, in the event that injury or illness is caused to your employees as a result of their work.

For example, if an employee happens injure themselves after tripping over a computer wire at your business and subsequently makes a claim against you for negligence, then your Employers Liability cover would be triggered.

It is important to have continuous liability insurance in place, and it’s strongly advised that you keep records of your previous liability policies. This is because some illnesses can appear long after exposure, and a former employee may decide to place a claim against you for an illness that has developed a while after they stopped working for you and your business may be deemed responsible.

Who needs Employers Liability Insurance?

The law states most employers must have Compulsory Employers Liability Compulsory Insurance. As long as the business is not a limited company, immediate members of your family who work for you do not count as employees for Employers’ Liability insurance; however casual workers, part-time workers and temporary staff will count.

If you employ staff and don’t take out Employers Liability insurance, you can be fined up to £2,500 for each day you do not have suitable cover in place. You must also display a copy of the certificate of Employers Liability insurance or have easy access to the proof of insurance, provided by your insurer when you take out or renew a policy, this can either be printed and displayed on a wall or be made available electronically.

EL Insurance protects your business against financial instability in the event of a claim, while also protecting against unknown loss for risks such as injury or illness that can arise even in the most careful business.

What does Employers Liability cover help with?

Essentially, Employers Liability covers you if you employ staff in any capacity, including permanent and temporary staff, paid or unpaid volunteers.

A standard policy with The Insurance Octopus covers you for £10 million for any one claim. It will help to pay any legal costs and expenses in defending the claim, and will pay compensation costs on the agreed amount if an employee’s claim is successful.

Your premium and insurance cover will be based specifically on the details you provide to us.

When do I need to notify The Insurance Octopus of a potential claim?

You should let us know at the earliest opportunity if you have a problem which you think is likely to give rise to a claim against your business for compensation. In order to try and minimise the problem and avoid unnecessary legal costs and distress, it is important to take prompt action.

It is important to check the terms and conditions of your liability policy for information regarding your notification requirements – take special note: a late notification or failure to notify will cause adverse repercussions for your business such as withdrawal of insurance cover.

How do I get Employers Liability Insurance?

Get in touch with our specialist team here at The Insurance Octopus who can walk you through thedifferent levels of cover available and find you the most competitive Employers Liability insurance quotes.

Alternatively, you can search for a quote using our online quote tool, find the cover you need.