If you employ staff you must have employers' liability insurance. Failure to do so can lead to a fine of up to £2,500 a day.
Employers' liability insurance enables businesses to meet the costs of compensation and legal fees incurred from an employee lawsuit. Employees injured or made ill because of an employer's negligence can still seek compensation, even if the business has ceased to trade.
There are very few exceptions. Even if you use self-employed staff, unpaid employees or volunteers you may still require employers' liability insurance.
The minimum level of cover demanded is £5 million; however most insurance policies offer £10 million as standard. This may sound like a lot, but you must consider that an accident may involve several members of staff. Any damages for severe disability caused will have to take into consideration the cost of lifelong care, loss of income as well as the pain caused. This can add up to a massive sum.
If you want more information on employers' liability you can see our employers' liability fact sheet.