Is Employers’ Liability Insurance a legal requirement?
Yes, Employers’ Liability Insurance is a legal requirement for all businesses with at least one employee, unless it’s a member of your own family, or someone who is based abroad. It’s also a requirement if you employ short-term or casual staff, as well as contractors. There may also be occasions where ex-employees believe they became ill while they worked for you, and could decide to claim.
According to gov.uk, your policy needs to cover you for at least £5 million, and be purchased from an authorised insurer – you can check this via the Financial Conduct Authority register. Beware that if you don’t have a valid Employers’ Liability Insurance policy, you could be fined £2,500 for each day you’re not properly insured.
Plus, remember to keep your policy certificate prominently displayed, or easily accessible, should inspectors ask to see it. If you are unable to do this, you could be fined £1,000.
How could Employers’ Liability Insurance benefit your business?
Regardless of the type of business you have, injuries and illnesses in the workplace can happen when you least expect them, therefore it’s imperative that you have Employers’ Liability Insurance, so you don’t end up out of pocket.
According to the Health and Safety Executive, research by the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations has shown that there were over 70,000 non-fatal workplace injuries reported in Great Britain in 2016/17.
What was the most common type of workplace accident? Perhaps unsurprisingly, this was a slip, trip or fall on the same level, followed by lifting and handling injuries.
How much do compensation claims cost insurers? A report by the Association of British Insurers (PDF 0.8MB) revealed that a massive £2.3 million was paid out every day in 2016 for employers’ liability, demonstrating the value this product can have for your business.