Employers’ Liability insurance is an essential cover that is designed to cover the costs of damages and legal fees if employees are injured or made ill at work through the fault of the employer.
If the employee is injured due to negligence of the employer, the employee can seek compensation even if the business is no longer in operation.
There may also be a claim from NHS who can claim the costs of hospital treatment including ambulance costs when a PI claim is upheld. So this cover can be vital to protect the business from the unexpected.
All businesses operating within the UK who employ a workforce must have this cover in force and be insured for at least £5m. However most insurers will provide cover for at least £10 million indemnity. There are some businesses that may be exempt from having this cover, this includes a business that is not a limited company, if you are the only employee or you only employ close family members.
The penalties for those deciding not to take out cover are steep. The Health and Safety Executive (HSE) is responsible for enforcement and can fine offenders up to £2,500 for each day that you do not have the appropriate covers in place.
It makes sense to speak to a qualified insurance professional who can advise on the correct levels of the cover that is appropriate for your business.