Quick guide to employers liability insurance

Employers Liability Insurance covers your business in the event of an employee being injured, falls ill, or even dies whilst at work.

This type of liability insurance is a legal requirement for any business, however, there are some exceptions, including:

• Sole-traders who do not employ anyone.

• Family owned firms who only hire close family members.

For any other companies, including those that only hire on a temporary or seasonal basis, employers liability is a legal, essential requirement.

You can define an employee as:

• You deduct National Insurance (NI) contributions and income tax from the paid salary.

• You or your business decides and controls where, when and how they work.

What can employers liability cover and how much do I need?

A comprehensive Employers liability insurance policy will meet costs of compensation for injuries or sickness sustained by your workers, whether caused on or off-site. Employers liability can also provide cover for legal costs, up to a limit agreed with your insurer.

The minimum required cover is at least £5 million, however, many insurance firms will offer businesses £10million of cover in many instances.

Once purchased, the certificate of Employers liability must be clearly displayed in an area that your employee's have access to and can view it.

It's important to note that the Health and Safety Executive (HSE) can fine your company up to £2,500 per day, until the day you purchase employers liablity cover, if you are not properly covered.