22-05-2007
Sole traders reminded about employer's liability insurance
Insurers are warning sole traders who plan on taking on staff to meet increasing demand over the summer that they need to take out employer's liability insurance.
Since 2005, sole traders have not been required to take out employer's liability insurance, as the majority do not have any employees.
However, many take on temporary staff during busy periods and this means that they are legally required to have cover at those times, or they could face fines of up to £2,500 per day.
David Quick, managing director of insuremyliability.co.uk, told Startups.co.uk: "This is the time of year when many sole traders such as those in the construction industry hire some help to take advantage of the extra business good weather brings.
"But it only takes a simple accident such as an employee slipping off a ladder or platform or injury from lifting a heavy object to result in a major financial problem."
The chance of an accident occurring may seem slim, but sole traders should bear in mind that figures from construction union Ucatt indicate a 25 per cent increase in the number of construction worker deaths during 2006.
Regardless of the risk, it is a criminal offence not to have employer's liability insurance when taking on temporary staff, and your business will not be covered for any liabilities in the event of an accident.
