What is Employers’ Liability Insurance?
No matter how much risk planning you do, freak accidents can still occur in the workplace. Employers’ Liability (EL) Insurance provides your business with financial compensation to cover legal costs, should an employee sue you for a work-related injury or illness.
For example, a former employee may have developed a respiratory condition as a result of working with asbestos, or an office worker could badly injure themselves in a fall due to poorly placed equipment.
Why you should have Employers' Liability Insurance
If you employ anyone, no matter how small or brief their role may be, you are legally required to hold Employers' Liability Insurance. Many businesses fall short of this requirement, incorrectly believing that subcontractors are not employees. However, the second that a subcontractor uses your tools/equipment or takes direction from you there is a ‘master/servant’ relationship and EL is required.
The HSE can fine you up to £2,500 per day you are without suitable EL insurance, so if you are unsure if it is required, contact one of our specialists today to discuss.
EL should also be considered for anyone who uses volunteers. Whilst it is not legally required to hold EL when you are not paying a wage, you still have a duty of care and have EL exposure to claims.
For further advice and guidance relating to Employers' Liability Insurance, contact our specialist team. We would be happy to advise you on your available options.