Employer’s liability insurance — don’t get caught out!

All sensible small businesses do their best to limit the possibility of injury or illness to their employees resulting from work, but if employees do have an accident or become ill, your business could be sued for compensation under your employers’s liability insurance. Please Note: businesses in the UK that employ staff are legally obliged to have employers’ liability insurance to provide cover against a claim from an employee*.

Employer’s liability insurance can be bought as a combined policy with public liability.

Why have employer’s liability insurance?

  • In most cases, if you have employees then employer’s liability insurance with cover of at least £5 million is a legal requirement and you could be fined if you’re not covered.
  • ‘No Win No Fee’ legal services which help employees claim compensation may increase the likelihood of a business experiencing an employer’s liability claim if employees suffer an accident or illness which they think has been caused as a direct result of their work.
  • Your employer’s liability cover could be triggered even if the employee is voluntary or self employed but they working under your supervision
  • The legal compensation costs of defending your business against a claim could be significant

What does employer’s liability insurance protect you and your business against?

  • Legal and compensation costs if you are successfully sued by a member of your staff should they believe their work has caused them injury or made them ill
  • Covers any person working for you in connection with your business even if they are voluntary help or self employed
  • Claims for injuries or illness caused by terrorism are also covered
  • It can be made part of a COMBINED LIABILITY policy and include public liability insurance which covers compensation you may have to pay a client, contractor or member of the public due to accidental injury or property damage

Even the most trivial accident such as tripping over a computer cable at work could trigger an employer’s liability claim from an employee. Employer’s liability insurance can ensure your business meets unforeseen legal and compensation costs. The employer’s liability policy is only available to purchase alongside our public liability insurance which covers claims made against your business from members of the public.

If you have any questions or wish to discuss your requirements with one of our senior brokers, please call us directly on 01708 855141 or e-mail Ian Hensby, Terry Golland, Paige Jones or Victoria Blackshaw.

* The law states most employers must have employer’s liability insurance. However, you may not need it if you have no employees, are a family business and closely related to your staff, or you are a public organisation (for example, a government department or a health service body).