Is employers liability insurance compulsory?

If you run a business, it's crucial to make sure that you are protected against every eventuality. Without paying attention to aspects such as having adequate insurance, you could be putting your company in a delicate financial situation in the future, so it's vital to make sure your business is secured against any potential claims. Employers liability insurance is compulsory for every company which employs staff, and here at Insure My Liability, we can ensure that you receive the most beneficial cover to shield your all important business.

Having employers liability insurance isn't just an intelligent investment, it's also a legal requirement for the majority of businesses within the UK. If you do not have this insurance and fall within the category of companies who are required to pay, your business could be fined up to a value of £2,500 for each day you've remained without the cover. This applies to all companies who employ staff, even if they are only temporary or part time.

If you're not a limited company, then any person who works with you is classed as staff. This includes family members and business partners and labour-only subcontractors, so it's important to make sure you're correctly insured to avoid any hefty financial penalties.

If you are a limited company, you must be covered by this insurance even if you only have one person, and own less than 51% of the company. If you are a limited company with more than one person, then the insurance will be necessary, regardless of how much of the company you own.

Employers liability insurance was compulsory for all firms up until last year, when these rules were relaxed a little, meaning that approximately 300,000 sole traders became exempt from this requisite. However, it's always important to double check if you think you are not obliged to invest in this cover, as there are specific situations where you use self employed staff, which may still mean that you are required to purchase insurance.

As a business, you must take insurance out from an authorised insurer. We have already conducted great and extensive research in order to collate information from the major authorised insurers, offering you peace of mind that all of the providers we suggest comply with all legal requirements.

Protect your company from any possible compensation costs and legal fees by using Insure My Liability to find employers liability insurance from the highest quality insurers, who offer the most comprehensive quotes.