Employer's Liability Insurance
Employer's Liability Insurance is a usually a legal requirement if you run a business. It covers you for your employee's actions while they are at work. With Employers Liability you will be covered for any successful claim made against your business, as well as any costs incurred in the defence of that claim (for example legal fees).
Key Features
This type of insurance covers your employees to a limit of indemnity of £10m. For many small businesses this is much more than you will need.
Employer's Liability is important because:
- It protects the company from the actions of employees
- Applies to all types of employees
- Some sub-contractors should have their own Employer's Liability cover
- The minimum required is £5m of cover but £10m cover is very common
Who is it for?
- All Employers with employees
- It is a legal requirement if you have any employees
- All limited companies having employees
- You can be fined up to £2500/day if you don't have a valid EL certificate
- Any business that employs staff
- Businesses run from a shop/home/office/yard/warehouse
Benefits
- Employer's Liability - satisfies your legal requirement for cover
- Immediate Documents - we provide your documentation within seconds of buying
- Bespoke additional cover - many insurers do not offer Employer's Liability cover on its own. You can usually buy other types of cover, like public liability.
- Peace of mind - your business is covered, leaving you to get on with running it!
Things to watch out for
- Limit of Indemnity - Some insurers will quote you employer's liability cover from £5m to £10m. You may only require £5m of cover, as this is the legal requirement .
- Optional covers - Some insurers have optional covers (like 'accident cover') already included in the policy. Others insurers will charge you an additional amount. When comparing quotes make sure you are comparing the same extent of cover.
- Family companies/Public Bodies - If you are a one person 'limited company', you do not have to have Employer's liability. If you are run a small business and employ ONLY your immediate family your requirement to have Employer's Liability may not valid.
- Excess - This is the amount you will have to pay in order to make the claim. Know the amount of your excess.
For example if you have a claim for £1000 and your excess is £500 you might only receive £500 back from the insurer.
- Working outside EU - Some insurers won't cover you if you do any of your work outside the European Union, others will only give you insurance if you stay within mainland UK. Ensure you know the geographical extent of your cover.
- Sub-contractors - Many business sub-contract tasks. This is sensible as it allows you to specialise in your own business, however you should always check that your sub-contractors have considered Employer's Liability insurance. This is common sense.
- Exclusions - Read your policy documents and any exclusion that may apply. Specific activities are excluded by the insurer for a reason.
- More employees - If you take on more employees in the middle of your insurance year you need to adjust your cover. Many insurers call this a "mid-term adjustment" and this is an easy process to go through.
- Cover
What are the next steps?
- Know your business - You already know what you do, so make sure you fully inform the insurer about all aspects of your business , particularly regarding the numbers of employees you have / intend to employ.
- Start date - Insurance prices change frequently, evaluate your desired start date, you may wish to have the insurance start at the beginning of a particular project.
- Compare insurers - check the type of cover you want by comparing a number of insurers and always use someone who can offer quotes from more than one supplier.
Compare Quotes
Compare, Decide, Buy
Frequently asked questions
Am I covered for this activity?
As long as you fully inform your insurer of the types of activity you undertake, then the policies are structured to cover behaviour that is consistent with a particular trade.
I don't recognise the Insurer name
You may not immediately recognise some of these insurers, this is because they usually specialise in dealing with brokers and don't sell direct to the public. All the insurers we work with are regulated and authorised by the Financial Services Authority, including ourselves.
Do I need Employer's Liability as well?
The answer is, it will depend on whether you have employees.
Am I covered for sub-contractors work?
Different insurers provide different types of cover, some will include sub-contractors work, and some won't. Make sure you have right type of cover for your business.