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Employers’ Liability Insurance

Cover compensation claims if an employee is injured or made ill from work

Employers’ Liability Insurance is a legal requirement under the Employers’ Liability Act 1969. It was set up to cover any compensation costs, damages or legal fees that may be levelled at you if one of your employees is injured or becomes ill as a result of the work they do for you. There are some exceptions, but if you employ at least one other person within your business, it is likely that you will need to have Employee Insurance in place. Failing to do so could result in fines of £2,500 per day and the risk that you will have to pay compensation in full should one of your employees make a claim.

Key benefits of choosing CKI

  • Minimum cover of £10 million
  • The best quote at the best price for your needs
  • Impartial guidance
  • A direct line to your account manager
  • Expert knowledge and understanding of businesses’ needs
  • First-class service that exceeds your expectations
  • Helpful claims assistance for quick and efficient settlement of claims
  • Ongoing support throughout your time with us
  • Free insurance review outlining the risks you face and the solutions

I have found that they are a business with a very personal approach and have the client’s best interests in mind to find them the most suitable and competitive deal.

Ralf Sims.

Employers’ Liability Insurance FAQs

What is Employers’ Liability Insurance?

Employers’ Liability Insurance, or Employee Insurance, is a type of cover that will help you to pay compensation to your employees if they become ill or are injured because of the work they carry out for you. It is a legal requirement for you to get this insurance as soon as you become an employer. If you don’t, you can be fined £2,500 per day and you will also be responsible for paying the full amount of compensation, legal fees and damages if a claim is made against you. This insurance is needed by law because even the safest workplaces can affect workers’ physical and mental health. An employee could slip over on the factory floor, suffer from work-related stress or anxiety, or contract repetitive strain injury while working in an office. If a claim is made in these cases, Employers’ Liability Insurance will ensure that any necessary compensation is paid.

Do I need Employers’ Liability Insurance?

If you employ at least one other person in your business, it is very likely that you will need to have Employers’ Liability Insurance in place. It’s important to note that an employee includes anyone that works for you in a fulltime or parttime capacity, as part of a work experience placement or apprenticeship or on a voluntary basis. However, if any of the following apply, you may be exempt:

  • You do not have a limited company and only employ close family members, such as your spouse, civil partner, parents, grandparents, children, step family or half siblings.
  • You employ workers such as cleaners or gardeners but they work for more than one organisation.
  • You have only one employee who owns 50% or more of the business’ capital.
  • You are self employed.
  • Your business consists of equal partners with no other employees.

The situation is more complex when it comes to contractors and subcontractors, so it is best to seek advice if your business uses these workers.

How much cover do I need?

The law says that you need at least £5 million of cover, although most insurers offer more. This is because the £5 million also needs to cover legal fees and other costs, which can diminish the amount remaining to pay compensation and damages.

If you own a group of businesses, you can take out a group policy of £5 million rather than separate policies for each business. However, you may want to increase this limit for additional peace of mind.

When will my insurer pay employee compensation?

Your insurance is in place to ensure that your employees receive the compensation and damages they are owed if they make a successful claim against you. Your insurer cannot refuse to make a payment because:

  • You have not provided reasonable protection for your employees.
  • You have not kept records or provided your insurer with those records.
  • You have done something they told you not to do.
  • You have not done something they told you to do.
  • You have not met any legal requirement relating to the protection of your employees.

However, just because your insurer will need to pay out despite these conditions, this does not mean that you cannot fulfil your legal obligations. It is your responsibility as an employer to protect your workforce. If your insurer does not believe that you have fulfilled these obligations, they may take legal action to reclaim their costs.

How much is Employers’ Liability Insurance?

There isn’t a fixed price for Employers’ Liability Insurance. This is because it depends on several factors, such as:

  • The number of employees you have
  • The type of business you run
  • How you pay your workers’ wages.

At Chris Knott Insurance, we can quickly gain an understanding of your business and its needs, providing you with the best quote at the best price.

Contact Chris Knott Insurance for an
Employers’ Liability Insurance quote today on
0800 917 2274

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