Employers’ liability insurance is essential for every business. Not only is it a legal requirement under the Employers’ Liability Act 1969, but it also provides financial protection for businesses in case employees get injured or fall ill due to their work. Without this insurance, businesses risk heavy fines and legal complications. In this blog, we’ll dive into why having the right coverage is crucial and how it helps protect your business and employees.

 

What is employers’ liability insurance?

Employer’s liability insurance is one of the few types of insurance that are legally required in the UK, along with commercial vehicle insurance when applicable.

If an employee is injured or becomes ill due to their job and decides to file a claim, this insurance has you covered. It protects businesses from the costs of damages and legal fees associated with compensation claims for work-related injuries or illnesses affecting both current and former employees.

This insurance also extends to remote workers, as you are responsible for their safety no matter where they are working. It’s a good idea to check on their home workspaces, like their workstation and lighting. If that’s not possible, provide them with safety tips for working from home. For any questions about your coverage or responsibilities, contact your insurance provider.

 

Who does employers’ liability insurance cover?

All types of businesses that employ people, regardless of their sector or size, need employers’ liability insurance.

This insurance financially protects your business against claims related to work-related illnesses and injuries from:

  • Full-time and part-time employees
  • Self-employed contractors you hire
  • Temporary staff, apprentices, and volunteers, as well as those participating in work experience or training programs.

No matter how careful you are, workplace injuries can happen, and with occupational diseases, claims may arise many years later. That’s why it is essential to have employers’ liability insurance in place if you employ anyone, even on a temporary basis; it helps cover compensation costs and legal fees.

 

Do I need employers’ liability insurance?

Smart Money People reports that over 160,000 small businesses in the UK with one to nine employees do not have Employers’ Liability insurance.

To stay compliant, your Employers’ Liability insurance must:

  1. Provide at least £5 million in coverage.
  2. Be issued by an authorised insurer.

Failing to meet these requirements could result in fines of £2,500 for each day you’re uninsured, plus £1,000 for not displaying the Employers’ Liability certificate or for refusing to show it to inspectors.

Not having Employers’ Liability Insurance can lead to serious problems down the road. Even if you don’t make any claims, you may find it difficult to get insurance later since you would need to disclose your lack of coverage, which insurers could see as a sign of poor risk management.

 

How much does employers’ liability insurance cost?

There’s no one-size-fits-all approach to business insurance. When looking for coverage, you need to think about how many employees you have, the nature of your business, and how you pay your staff.

Since Employers’ Liability Insurance must come from an authorised insurer, there’s a risk of being under-insured, and not having coverage could lead to fines. That’s why we recommend talking to a knowledgeable advisor who can help you find the right policy at the best price.

Give an NIS business insurance advisor a call today! They’ll walk you through your options and help you find a policy tailored to your needs—all at no extra cost.

When you chat with an NIS advisor, you can relax and leave the heavy lifting to them instead of spending hours trying to figure out the right policy. Contact us today to stay compliant and worry-free!