Employers liability
Most Employers are required by law to insure against the possibilities of their employees getting insured, or catching a disease when working on behalf of their employer.
An Employer is responsible and has to make sure that their employees work in an environment that considers their health and safety while working for them.
An employee may be injured at work or even a former employee, may become ill as a result of their work while in your employment. The employers Liability (Compulsory Insurance) Act 1969 was brought in to ensure employees obtain a minimum level of insurance (Employers Liability Insurance) to respond to such claims.
What does Employers Liability Insurance cover?
Your Employers Liability Insurance will cover you to meet legal and compensation/damages award against you in the event of an employee that may have been injured or become ill either at work or away from work when acting on your behalf, and where that illness or injury is linked to the employers neglect duty of care.
The policy would normally respond to the specific activities of the business coverage for employers Liability insurance is very important and therefore you should obtain your employers liability Insurance from a reputable company, making sure there are no restrictions.
Cover for Employers Liability insurance certificate starts at a minimum of £5,000,000, although most companies in fact issue at £10,000,000 cover.
You should always retain a copy of your Employers Liability certificate and although since 1 October 2008 it is no longer compulsory it still remains very good practice.
In addition you do need to display you’re up to date Employers Liability certificate of insurance so all your staff can easily see it.
Remember if you do not obtain an Employers Liability certificate of insurance you could be breaking the law and facing fines up to £2,500 a day.
Who is an Employee?
This can be a grey area, as to why you should purchase an Employers Liability Insurance, an example of the types of reasons for Insurance cover in this field are as follows.
- If you pay someone NI and Tax
- You tell them when and where to work
- You treat them in the same way as employed people
- You give them your equipment and materials to work with
You may not need cover for employers Liability Insurance if:
- They are a separate ltd company invoicing you or a contractor who is independent
- They are in business for their own benefit
