What is employer’s liability insurance?
Employer’s liability insurance is a type of business insurance which provides financial protection for business owners if an employee claims against them due to injury or illness in connection with the work they do for you.
It is a legal requirement for businesses to have employer’s liability insurance as soon as they become an employer. The policy must provide cover for a minimum of £5 million and come from an authorised insurer. You may not need employers liability insurance if you only employ a family member or someone who is based abroad.
You can be fined £2,500 for every day you are not properly insured.
It is crucial to seek independent advice to make sure you get the correct business insurance to suit the way your business operates.
Alexander Swan will work together with you
Alexander Swan will work together with you so that we can build a tailored, all -encompassing policy to perfectly match the size of your business and the risks it is exposed to.
Unlike dealing directly with an insurance company, Alexander Swan has access to multiple insurers and their diverse policies. This broad reach allows us to present you with a range of options, increasing the likelihood of finding the most competitive rates and comprehensive coverage. We are with you every step of the way, from helping you choose the right insurance through to fully assisting you should you ever need to make a claim.
Do I need employers liability?
It is a legal requirement for businesses to have employer’s liability insurance as soon as they become an employer. The policy must provide cover for a minimum of £5 million and come from an authorised insurer. You may not need employers liability insurance if you only employ a family member or someone who is based abroad. You can be fined £2,500 for every day you are not properly insured.
What does employer’s liability insurance cover?
- Compensation claims: If an employee is injured or becomes ill as a result of working for you, whether it be an accident or as a result of carrying out activities related to their working for you, employer’s liability insurance helps to pay out any compensation payments.
- Legal expenses: The cost of any legal proceedings are covered in case someone makes a claim against your business.
Employer’s Liability Insurance FAQs
No. Employer’s liability only covers claims against you made by your employees. Claims from third parties are not covered under employers liability. Public liability insurance would cover claims from third parties and the public. It is possible to get public and employer’s liability insurance combined.
No. You would need professional indemnity insurance to cover negligence.
It is a legal requirement for businesses to have employer’s liability insurance as soon as they become an employer. The policy must provide cover for a minimum of £5 million and come from an authorised insurer. You may not need employers liability insurance if you only employ a family member or someone who is based abroad. You can be fined £2,500 for every day you are not properly insured.
