For most UK businesses, Employers’ Liability Insurance is a legal requirement. Any business that employs anyone other than immediate relatives of the owner, needs to have this cover in place.
You must also display a valid certificate for this cover at any premises that your employees work from, and have at least £5m cover in place. In practice though, the market standard is for £10m cover to be provided. Public sector organisations or businesses that employ only the owner and their immediate family are exempt from this requirement.
What does Employers’ Liability Insurance cover?
Employers’ Liability Insurance protects you against claims for compensation from your employees, for injuries or financial loss arising as a result of their employment. For example, if they were injured whilst working, be it on your premises, or elsewhere, they may take legal action against you.
What is excluded?
Employers’ Liability does not cover injury or loss to customers or other stakeholders, as this would typically be covered by Public Liabiility Insurance or Product Liability Insurance. It also wouldn’t cover any Employment Tribunal or Constructive Dismissal claims, as these would be covered by Employment Practices Liability Insurance.
How much Employers’ Liability Insurance do I need?
The level of cover you need depends largely on the nature of the work people are carrying out. Routine office work is seen as very low risk, whereas manual and construction work, especially if it involves woodworking or exposure to hazardous materials like asbestos, is a significantly higher risk. Many high risk contractors would arrange £20m Employers’ Liability cover.
Why use JM Glendinning for your Employers’ Liability Insurance?
As an experienced Insurance Broker, established in 1972, we have arranged Employers’ Liability Insurance for just about any business, and have relationships with major insurers that will help us find the right cover for you at competitive terms.
Employers’ Liability claims can be time-consuming, stressful and complex, but our experienced team of specialist claims handlers will help you every step of the way and communicate with insurers on your behalf, to help you settle your claim promptly.