Employers Liability Insurance

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Employers Liability Insurance

If you run a small or large business you will be responsible for the health and safety of your employees while they are at work. Unfortunately accidents and illnesses will occur at some point.

Employers liability cover offers protection against employees who, as a result of an injury or illness suffered at the workplace, may try to claim for compensation from you (head of the company) if they believe you are responsible or had a part to play.

The Employers Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of Insurance cover against any such claims. Employers Liability Insurance will enable you to meet the cost of compensation for your employees' injuries or illness whether they are caused on or off site.

But any injuries or illness relating to motor accidents which occur while employed as a member of your staff, may be covered separately by your motor insurance.

It is important to remember that employers liability insurance differs from public Liability Insurance, as the latter covers you for claims made against you by members of the public or other businesses, but not for claims by employees. In addition, public liability insurance is generally voluntary, while employers liability insurance is compulsory. You may find yourself facing a fine if you do not hold a current employers' liability insurance policy which complies with the law.

Level of cover needed?

You must be insured for at least £5 million, with most insurers offering cover for at least £10 million. You should bear in mind that the £5 million minimum level of cover includes costs, so you may want to take out cover of more than this. Study the contents of your policy carefully and always remember to read the small print - you don't want to be paying for something that isn't necessay.

Who can sell the insurance?

Only authorised insurers can sell Employers liability cover, so make sure you check that your insurer is authorised before you take out the insurance, as the company may be breaking the law.

Authorised insurers are individuals or companies working under the terms of the Financial Services and Markets Act 2000. The Financial Services Authority (FSA) maintains a register of authorised insurers, which can be checked on the FSA website: www.fsa.gov.uk