EMPLOYERS' LIABILITY INSURANCE

Employers are responsible for the health and safety of their staff when they are at work. If your business employs more than one person, it’s a legal requirement to have an employers’ liability insurance policy in place.

For many UK businesses, this means employers’ liability insurance is compulsory. So, what does employers’ liability insurance cover? By definition, the meaning of employers’ liability is to cover the cost of any claims a staff member might make for being injured or ill as a result of their employment. Employers’ liability policies also protect your business against the costs of medical treatment, compensation, and any related legal fees, meaning your company will be as protected as possible.

With Tradesure as your broker, you can get employers’ liability insurance quotes for tailored policies to suit any type of business. You can also choose the level of cover you need, with optional extras such as adding public liability insurance on a combined policy.

Employers’ liability insurance protects your business against compensation costs if any of your employees suffers an illness or injury as a direct result of their employment.

This is especially important for anyone working in a mechanical, construction or trade environment where there is a high risk of injury. The law says that, as a minimum, your employers’ liability insurance in the UK should provide cover for £5 million. Tradesure employers’ liability insurance provides cover for £10 million as standard, with higher rates of cover available.

We are often asked the question ‘do I need employers’ liability insurance?’. If you have more than one employee, there are regulations in place which mean it is compulsory for you to have employers’ liability cover. However, some employers may be exempt from taking employers’ liability policies if:

• Your employees are based abroad
• You employ students on work experience programs
• You have volunteers
• You employ staff who exclusively carry out unpaid work 
• You are a sole trader who only employs close family members and aren’t running a limited company

If you don’t have the correct employers’ liability cover certificate, you risk a fine of up to £2,500 for every day your business is uninsured. Even if you don’t get fined, a claim brought by an employee for injury or work-related illness could put your business at financial risk. Read the government’s guide to compulsory employers’ liability insurance here.

Many people explore this point, which in essence is asking the question is employers’ liability insurance compulsory? What you should know is that without the correct employers’ liability cover, you risk a fine of up to £2,500 for every day your business is uninsured. Even if you don’t get fined, a claim brought by an employee for injury or work-related illness could put your business at financial risk.

When comparing employers’ liability insurance policy, you should be sure that you have the correct level of cover in place to avoid any of these risks. Read the government’s guide to compulsory employers’ liability insurance regulations here.

Having an employers’ liability insurance certificate in place means you are covered for legal costs and compensation payouts, including medical costs incurred from an employee. For example, if you are taken to court by an employee due to a health and safety breach, your costs are covered by your employers’ liability policy,

As with any business insurance, the price of employers’ liability policies will depend on different things. Factors which will affect your employers’ liability insurance cost include the industry your business is in, how your business operates and the level of risk your employees face.

As you compare employers’ liability insurance quotes, you should know that many insurance companies will calculate your premium based on how likely you are to make a claim and its potential costs. You can reduce the cost of employers’ liability insurance by improving health and safety policies at work to protect your staff.