When do you need employers liability insurance?

With so many different types of insurance available to business owners, it can be a minefield trying to ascertain which policy you really need. Here at Insure my Liability, we understand that your busy schedule requires up to date and clear cut information regarding the protection of yourself, your business and your employees. For this reason, we strive to give concise and trusted advice regarding all aspects of employers liability insurance.

Due to the Employers Liability Act 1969, the majority of businesses must have insurance cover in place to protect their employees against the potential difficulties encountered as a result of injury or disease inflicted upon them as a result of their place of work. In turn, this cover will also protect you and your business from the expenses that will arise should such an occurrence happen.

Only a small selection of British businesses will not legally require employers liability insurance, these include;

• A business run entirely by family members
• Sole traders and partnerships where at least 50% of the trading company is possessed by the owners/employees
• Public bodies such as health authorities and government departments

If your business does not fall into the above categories, employers liability insurance is a legal requirement. If your business appears to be exempt, it is always advisable to have some form of cover in place for additional financial security.

If you are looking for employers liability insurance, it is important to remember that the law states a business must be insured to the figure of at least £5 million, although in practice many insurers cover in excess of £10 million.

Failure to comply with the laws surrounding employers liability insurance could result in a large fine of up to £2,500 for every day your business operates without appropriate insurance. Put simply, it is your responsibility as a business owner to oversee the health and safety of your employees whilst they are working for you.

If you would like further information regarding employers liability insurance, simply visit our website here at Insure my Liability for advice you can trust.