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Employers Liability Insurance

Employers liability insurance

In the UK, if you employ staff, it's a legal requirement to have employers' liability (EL) insurance in place. EL is generally added onto your general commercial insurance rather than offered as a policy in isolation.

Here at Marsh Commercial, we can arrange cover that gives you and your business peace of mind. We'll give you:

  • Confidence
    We know you're dedicated to delivering specialist services. You can be confident that we're committed to working with leading insurers on your behalf. We'll arrange appropriate cover – on competitive terms.
  • Expertise
    Our team have a wealth of knowledge in arranging commercial insurance for professionals. We take time to understand your business to ensure that the protection you have in place is suitable for the risks you face.
  • Service
    We're here for you when you need us – from providing tailored advice to walking you through the claims process. So, while you focus on supporting your clients, we're here to protect you, making insurance one less thing for you to worry about.

How our team of insurance experts can help you

We take time to understand the risks you face and advise how to manage them. We're here to make sure you have the right employers liability insurance in place to protect you and your business.

What cover does employers liability insurance provide?

You're responsible for the health and safety of your employees. However, accidents can happen. Suppose you're found liable for illness or injury sustained by an employee as a result of the work they've done for you. In that case, you'll need EL cover in place to protect against compensation and legal fees, as well as crisis and public relations (PR) costs.

An EL policy covers all injuries; whether they happen suddenly, like a slip or trip, or develop over time due to the nature of a person’s work. A claim can be made while your employee works for you, or even after they leave your business. This might occur if symptoms only become apparent after a number of months.

If an employee claim ends up going to court, the compensation amount can reflect a number of different costs, such as medical costs, loss of income and legal costs.

Frequently asked questions

Q
What is employers liability insurance?
A
A: Employers liability insurance provides cover for your legal liability to pay compensation, for death, bodily injury and illness to employees arising as a result of their employment.
Q
Who needs Employers Liability Insurance?
A
A If you employ staff, you're legally required to have employers liability insurance in place. As an employer, you're responsible for ensuring your staff are safe and well; most importantly, that they don't get sick or injured because of the work they do for you. Despite your best efforts, If one of your employees suffers an injury or becomes ill and believe it's your fault, they may try to claim compensation from you. If an employee or volunteer – past or present – makes a claim against you, employers liability insurance will protect you against legal costs defending a claim. It will also cover any compensation you may be required to pay.
Q
When do I need to get employers liability insurance?
A
A: You need employers liability cover in place from the day your business starts employing staff. Regardless of whether these staff members are paid or not, you are at risk of legal action from them. To qualify as a member of 'staff', a person does not have to be paid or under contract with you; it includes anyone you have a legal duty of care over. So, even sole traders may need employers liability insurance.
Q
For what types of staff do I need employers liability cover?
A

You need employers liability insurance for all kinds of staff you employ. An 'employee' is not necessarily someone who you pay – it can be anyone under a contract of service. This may include volunteers or someone under your temporary control, whether on a contract or not, such as:

  • full-time employees
  • part-time employees
  • directors
  • voluntary workers
  • seasonal staff
  • contract staff
  • labour-only sub-contractors
  • students or work placements.

Q
Are there any exceptions to the type of employees I need to cover?
A
You may not need cover if you only employ a family member or someone who is based abroad – see http://www.hse.gov.uk/pubns/hse39.pdf for information. If you are a limited company most exceptions will not apply to you, unless the company employs only its owner, with that owner also holding over 50% of the issued share capital.
Q
What does Employers Liability Insurance cover?
A
Employers liability insurance will help you pay compensation if an employee is injured or becomes ill because of the work they do for you. It can also cover legal and defence costs resulting from a claim.
Q
How much is employers liability insurance?
A
The cost of employers liability can vary depending on the number of employees you have, the expected annual wage roll figure, the activities carried out along with the locations these are carried out.

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