Obtaining employers’ liability insurance is not only a legal compulsion but a wise decision.
As an employer, you are responsible for the wellbeing of your employees and you may be held liable if an employee falls sick or suffers an injury while at work.
Having comprehensive employers’ liability cover in place reflects that you are fully prepared for such situations.
At IC Insurance Solutions, we understand the specific challenges and risks you face as an employer. That is why we are focused on bringing you flexible insurance solutions that provide adequate cover to your business.
What is Employers’ Liability Insurance?
Employers’ liability insurance, also known as employers’ insurance or employment practices liability insurance, is a special type of liability insurance designed to protect employers against compensation costs and legal fees that may arise if an employee gets injured or ill through work.
Your employees or ex-employees may choose to sue you for compensation if they believe you are responsible for their work-related injury or illness. If you are held liable, you will be required to financially compensate them for their loss.
Employers’ liability insurance helps by providing funds for the cost of defending or settling a claim, including compensation as well as legal penalties.
Do I Need Employers’ Liability Insurance?
You require employers’ liability insurance if your business employs anyone. In the UK, employers’ liability insurance was made a legal obligation back in 1969.
According to the UK government, you must take out employers’ liability insurance as soon as you employ one or more individuals. Your insurance package must cover you for a minimum amount of £5 million and it should be obtained from an authorised insurer.
Any employer who fails to comply with these rules may have to pay hefty penalties. You could be fined £2,500 per day if you have not taken out employers’ liability insurance. You could also be fined another £1000 for not possessing or failing to produce employers’ liability certificate in front of inspectors.
You may not be legally required to have employers’ liability insurance if:
- You own a company with no employees
- You run a family business and employ family members only
- You employ someone who is based abroad
Who Does Employers’ Liability Insurance Cover?
Employers’ liability insurance packages by IC Insurance provide all-round cover for claims brought by:
- All your permanent employees
- Contract, casual and seasoned employees
- Labour-only subcontractors
- Temporary staff such as students and interns
- People on work placements
- Referees and marshals
About IC Insurance Solutions
IC Insurance is a vibrant and enthusiastic insurance intermediary with a passionate team comprising of experienced insurance experts and seasoned brokers. We know the market inside out and our strong partnership with insurance providers enables us to provide holistic coverage to you at a competitive price.