Employers’ Liability Insurance

As a business owner, employing your first set of helping hands is a huge milestone and one you should be proud of. No doubt the journey to this point has been tough, but with employees come new rules and regulations that you must consider in order to abide by the law.

As soon as you become an employer you must safeguard you and your business against legal and compensation claims from the employees themselves. Accidents can and will happen, and if you aren’t properly insured it could be crippling to a business, through both employee claims and fines from the government.

What is Employers’ Liability Insurance

Employers’ liability insurance is a legal requirement under the Employers’ Liability Act 1969, and protects your employees if they get injured at work, or become ill as a result of working for your business.

It covers the damages and compensation costs, as well as any associated legal fees, in the event that a current or ex-employee pursues a claim which may have been caused while working for you.

By law, you’re required to have at least £5 million worth of cover the moment you employ your first member of staff. However, different businesses and industries have their own risks associated with them, so this may vary.

Some companies may not need employers’ liability insurance, such as those that only employ close family members or staff abroad. While this isn’t a legal obligation, it is still recommended for the financial security it provides.

What Types of Claims Am I Covered For?

Accidents can and will happen at work, and in the case of occupational diseases claims, can happen many years down the line. Examples of claims that could be made against you that employers’ liability cover would protect your from include:

  • An employee slipping on a wet floor and injuring themselves due to incorrect footwear
  • A construction worker falls from incorrectly assembled scaffolding
  • A personal trainer at your gym trips over a loose area of carpet
  • An engineer is hurt carrying out work without access to the correct tools

 

As mentioned, claims can come back to haunt you many years down the line, especially when working with hazardous materials. For example if a former employer is diagnosed with an illness related to asbestos exposure during their time working with you, they would be entitled to claim against you.

Most employers’ liability insurance policies will cover you for:

  • Legal costs and compensation claims, including defending health and safety law prosecutions.
  • Cover against claims made by all employees, including any workers employed through government schemes
  • Cover against claims by staff on work experience
  • Loss of earnings per day for each director, partner or employee attending court

How Dead Simple Insurance Can Help

At Dead Simple Insurance, we know what policies you need to protect your employees, yourself and most importantly: your business. We can help you find the best prices from reputable providers, taking the hassle out of insurance.