Unlike other types of professional insurance where cover is optional and dependant on the needs of the business, employers’ liability insurance is required by law. So, if you have employees, you are legally required to have at least a minimum level of liability cover.
Protecting Your Employees
The reason this insurance cover is compulsory is because your employees have the right to work in an environment that meets health and safety standards. They also have the right to seek compensation from you if they become injured as a result of a laxity in these standards, and you need to be able to afford to pay it.
The costs of an injury at work lawsuit can be substantial, as can the often vast sums you may have to pay out in compensation. You are not only breaking the law if you don’t have employers’ liability insurance; you are also putting your business at serious financial risk. Something as small as a missing handrail or the wrong training could cost you thousands in damages payments.
Things To Remember With Employers’ Liability Insurance
• You need to display evidence of cover for employees
• You must be insured for at least £5 million, but a limit of £10 million is recommended
• You can be fined up to £2,500 per day you are without insurance by the Health and Safety Executive (HSE)