It’s not a option
You’re responsible for the health and safety of your employees while they are at work. Your employees may be injured at work, or they or your former employees may become ill as a result of their work while in your employment. They might try to claim compensation from you if they think you are to blame. The Employers’ Liability Act 1969 makes this insurance compulsory so it’s not an option. You must have at least a minimum £5,000,000 level of insurance cover against any such claims.
Who we cover
In general, we cover your employees - so in case you didn’t know you may need employers’ liability insurance for someone who works for you if:
- You deduct national insurance and income tax from the money you pay them.
- You have the right to control where and when they work and how they do it.
- You supply most materials and equipment.
- You have a right to any profit your workers make although you may choose to share this with them through commission, performance pay or shares in the company. Similarly, you will be responsible for any losses.
- You require that person only to deliver the service and they cannot employ a substitute if they are unable to do the work.
- They are treated in the same way as other employees, for example, if they do the same work under the same conditions as someone you employ.
What we cover
We provide you with £10,000,000 of Employers Liability insurance. This will enable you to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site. Although any injuries or illness relating to motor accidents, which occur while your employees are working for you, may be covered separately by your motor insurance.
Public liability insurance is different. It covers you for claims made against you by members of the public or other businesses, but not for claims by employees. While public liability insurance is generally voluntary, employers’ liability insurance is compulsory.
What happens if you don’t have employers’ liability insurance?
The Health and Safety Executive (HSE) enforces the law on employers’ liability insurance and HSE inspectors will check that you have employers’ liability insurance with an approved insurer for at least £5 million. They will ask to see your certificate of insurance and other insurance details.
You can be fined up to £2500 for any day, which you are without suitable insurance. If you do not display the certificate of insurance or refuse to make it available to HSE inspectors when they ask, you can be fined up to £1000.