Is Employers' Liability insurance a legal requirement in the UK?
Most UK businesses that employ staff are legally required to have Employers' Liability insurance. The law includes limited exemptions. The minimum level of cover required is generally £5 million. Whether a person is an employee for these purposes depends on the working relationship and circumstances.
What does Employers' Liability insurance cover?
Employers' Liability insurance is designed to cover an employer's legal liability for compensation and associated costs arising from employee injury or illness caused in the course of their employment, subject to the policy wording, limits, conditions and exclusions.
What is the difference between Employers' Liability and Public Liability?
Employers' Liability relates to an employer's legal liability for injury or illness suffered by employees arising out of their employment. Public Liability relates to legal liability for injury to third parties or damage to their property arising from business activities. They cover different risks.
Do I need Employers' Liability if I use subcontractors?
It depends on the nature of the working relationship and the work being carried out. Some labour-only subcontractors may need to be treated as employees for Employers' Liability purposes, while genuine self-employed contractors may be treated differently. Do not rely solely on the description in an agreement; discuss the arrangements with your broker and seek legal advice if needed.
What is Employment Practices Liability insurance?
Employment Practices Liability insurance may cover specified claims arising from alleged employment-related wrongdoing, such as certain allegations of discrimination, harassment or wrongful dismissal. The precise cover, insured persons, exclusions and notification requirements vary by policy.
Does Employers' Liability cover employees who are injured outside work?
Employers' Liability is not general personal accident cover. It is concerned with the employer's legal liability for employee injury or illness arising out of their employment. Accidents unrelated to work would not ordinarily fall within that description. Separate personal accident cover may be considered.
What is Group Personal Accident insurance?
Group Personal Accident insurance can provide agreed benefits if an insured employee suffers an accident resulting in an injury covered by the policy. Benefits and eligibility depend on the cover selected and policy terms.
Can my business insurance be reviewed when I take on more staff?
Yes. Changes to employee numbers, occupations, activities, locations and working arrangements can affect your insurance requirements. You should tell your broker or insurer about relevant changes and check whether your cover and declarations need updating.