Employers’ liability insurance is there to protect you, and your business, should an employee become injured or ill whilst at work. It’s a legal requirement for a lot of businesses in the UK, but some types of businesses are exempt. It’s important to determine if you are legally responsible for arranging this type of insurance. If an employee becomes unwell or hurt because of the work that they do for you, employers’ liability insurance will cover you. Though the experience is likely to be a worrying one, having employers’ liability insurance makes sure that you are hurt financially by the process.
How Much Employers Liability Insurance Cover Do I Need?
Regardless of how careful you and your employees are at work, accidents and injuries can still happen. This doesn’t simply include sudden injuries resulting from an unfortunate accident or fall, it also covers problems that develop over time. For example, a chronic illness or repetitive strain injury. Without employers’ liability insurance, you will find yourself financially responsible for covering the costs of a compensation claim.
As compensation payouts can be extremely large for this type of thing, you need employers’ liability insurance to cover you. You need enough employers’ liability insurance to cover you for compensation, legal fees, medical costs and any other costs that could arise from the claim. It’s impossible to know how much a claim will cost you, so it’s always better to have too much cover than too little.
How Much Does Employers Liability Insurance Cost?
The cost of employers’ liability insurance varies hugely, and this is dependent on a lot of variables. Things such as how many employees you have and the type of business are taken into account. You will also pay more for a higher level of cover. For example, a basic level of cover will be a lot more affordable than a most extensive level of cover, but you are covered for less.
Is Employers Liability Insurance a Legal Requirement
Employers’ liability insurance is not always a legal requirement, as it depends on the terms of the contract that you have with your employee. You are only required to have employers’ liability insurance for people who you employ on a contracted basis. This could be a contract of service or apprenticeship, but a contract of employment is required for employers’ liability insurance to be a legal requirement.
Otherwise, there is no law saying you need to have employers’ liability insurance in place. You do not need to have employers’ liability insurance as a sole trader, as a company that only employs family members or as a public body. Some limited companies are also exempt, but not all.
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Employers’ liability insurance is there to protect you, and your business, should an employee become injured or ill whilst at work. It’s a legal requirement for a lot of businesses in the UK, but some types of businesses are exempt. It’s important to determine if you are legally responsible for arranging this type of insurance. If an employee becomes unwell or hurt because of the work that they do for you, employers’ liability insurance will cover you. Though the experience is likely to be a worrying one, having employers’ liability insurance makes sure that you are hurt financially by the process.
