Employers Liability Insurance

Employers Liability Insurance

Do you need Employers Liability Insurance?

To get a range of quotes or for more information, contact us here. Alternatively you can give us a call on 02476 326 213 to discuss your requirements further.

What does Employers Liability Insurance do?

Employers Liability Insurance helps businesses to meet the cost of compensation for injuries to their employees sustained while at work

Why compare Employers Liability insurance with Needham Commercial Insurance Services?

Needham Commercial Insurance Services can save you time and money on your Employers Liability insurance. We compare the Employers Liability insurance policies of all the main commercial insurance companies to find you the right cover at the right price.
To get a range of quotes or for more information, contact us here. Alternatively you can give us a call on 02476 326 213 to discuss your requirements further.

Why do you need it?

Over the past decade there has been a huge increase in litigation and record-breaking court awards. Businesses have sustained substantial losses arising from their responsibilities in respect of the health and safety of their employees while they are at work.
There is a chance that your employees may be injured at work, or that they, or your former employees, may become ill as a result of their work while in your employment. As a result of this, your current or past employees might try to claim compensation from you if they believe you are responsible. In this event an Employers Liability Insurance policy will help to meet the costs of the claim for compensation.
Employers Liability Insurance became a legal requirement in 1972 as a direct result of the 1969 Employers Liability Act.

Who is an ‘employee’?

The definition of an employee is anybody you have on your premises who is assisting you in your work. It may be on a part-time basis, a full-time employee, students on work experience courses, a self- employed sub-contractor, a person working on a trial basis to see if they are suitable and even voluntary workers. They are all technically employed by you, because they are under your instruction and working on your premises.
You may be exempted from having Employers Liability Insurance where all your business’ employees are close relatives and the business itself is not incorporated as a limited company. Similarly, companies where the owner is the sole employee, and owns at least 50% of the company’s issued share capital may well also be exempt. You should check if you think that this may apply to you.

What cover does an Employers Liability policy provide?

A standard Employers Liability Insurance policy will cover you for claims made against you if an employee is killed, injured or contracts an illness or disease whilst working for you in connection with your business. It also covers you for the costs and expenses incurred by the claimant as well as your legal costs. You will also be covered for costs and expenses incurred in the defence of a prosecution relating to the welfare of employees under the Health and Safety at Work Act 1974.

Does your small business need Employers Liability Insurance?

If any of your employees are normally based in England, Scotland or Wales (including offshore installations or associated structures) you must have Employers’ Liability Insurance.
The Employers’ Liability (Compulsory Insurance) Act 1969 requires you to have at least a minimum level of insurance cover. You do not need Employers’ Liability Insurance to cover any of your employees who are based abroad, even if they are only on secondment. You should check whether the law in the country where they are based requires you to take out insurance or take any other measures to protect your employees.
If any of your employees are normally based abroad but spend more than 14 days continuously in Great Britain, or more than seven days on an offshore installation, you will need Employers’ Liability Insurance.
Under certain circumstances your business may be exempt from having to have Employers Liability Insurance. Primarily, exempt businesses include public organisations (which include government departments, local authorities, and others); health service bodies; some other publicly funded organisations; family businesses which employ only closely related family members, and are not incorporated as a limited company; and companies where the owner is the sole employee, and owns at least 50% of the company’s issued share capital. All other organisations are legally bound to buy a policy.
The Health & Safety Executive guide to Employers’ Liability will help you work out whether this applies to you and you can download the guide from the Health & Safety Executive website here. Businesses based in Northern Ireland will require Employers Liability Insurance unless exempt.
To find out whether this applies to your business, you should read the regulations on the Office of Public Sector Information website which can be found here. If you are not sure about whether you may be exempt from the requirement to obtain Employers Liability Insurance you may wish to seek legal advice.

How much Employers Liability cover will I need?

You must be insured for at least £5 million and in practice most insurers offer cover of at least £10million. You should look carefully at the risks and liabilities that your business faces and consider how much cover you need.
If your business is part of a group, a policy for Employers’ Liability Insurance can be taken out for the group as a whole. In this case, the group as a whole, including subsidiary companies, must have cover of at least £5 million.
You can have more than one policy for Employers’ Liability Insurance, but the total value of the cover provided by the policies must be at least £5 million. You should bear in mind that the £5 million minimum level of cover includes the costs of things like legal action, so you may wish to purchase a higher level of cover.
When you take out or renew a policy, your insurer will give you a Certificate of Employers’ Liability Insurance. This must state clearly the minimum level of cover provided and the companies covered by the policy. You must display a copy of the Certificate of Insurance where your employees can easily read it.

Compare Employers Liability Insurance policies now

To get a range of quotes or for more information, contact us here. Alternatively you can give us a call on 02476 326 213 to discuss your requirements further.

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Needham Insurance Services is Authorised and Regulated by the Financial Conduct Authority. FCA Number 304514 Registered in England and Wales.         Registered number: 4066049.  Registered office: Needham Commercial Insurance Services, Manor Court Chambers, Townsend Drive, Attleborough Fields Industrial Estate, Nuneaton, CV11 6RU