Employers Liability Insurance
Employers Liability Insurance is required by law for any UK business that employs staff or uses labour only sub contractors.
Employers Liability Insurance provides you with indemnity should an employee sustain an injury or disease during the course of his employment and seek compensation from his/her employer. As an example should an employee fall from a ladder and sustain serious injuries he could sue the business for whom he was working if he hadn't been supplied with the relevant safety equipment or had suitable training. He may be entitled to compensation which the business would be forced to pay if they don't have this cover in place.
The Employer's Liability (Compulsory Insurance) Act 1969
This legislation stipulates the legal requirement for Employers Liability Insurance and explains which companies are legally required to have the cover in place. There are some exemptions for family businesses and the legislation can be quite difficult to understand. A guide is available from the HSE which exlpains the act in more detail but we have created the following summary of the requirements of the Employer's Liability (Compulsory Insurance) Act 1969.If you are unsure whether you need the cover please contact us for help and advice.
The limit of indemnity
The law requires you to provide a minimum of £5 million of cover, though most insurers will offer a £10 million limit of indemnity as standard.
Employers Liability - Legal Definition
In the event of accidental Injury sustained by any employee of the insured caused during the period of insurance and arising out of and in the course of their employment by the insured in the course of the trade or business, and within the territorial limits, the Insurance Company will indemnify the insured in respect of all sums which they become legally liable to pay as compensation and claimant’s costs and expenses, for such injury.
Where can you buy Employers Liability Insurance
Employers Liability Insurance is usually bought with public liability insurance as part of a Combined Liability Insurance policy. If you have public liability insurance in place, you should be able to add it to that policy. You can compare employers liability insurancequotes online here on ContractorsCompare.com If you would like any advice please feel free to contact us.