Employers’ Liability Insurance often leaves many people wondering whether they require it and what it means. However, it is a form of insurance that covers all costs that come from any claim made against you from employees while in the workplace.
Do I need it if I own a limited company with no employees?
If you own a limited company and are the only director or you own more than 50% of the shares and have no employees, you won’t require Employers’ Liability insurance. However, some of your clients might require you to have this in place before you begin working.
If you are self-employed as a sole trader or a run a limited company, the law requires you to have employers’ liability insurance.
Is there a fine for not having it?
If you fail to have the right type of insurance in place when you are legally required to do so, you can end up in a lot of trouble with the Health and Safety Executive (HSE). Every day that you fail to have
Your insurance certificate should be available to your employees and you will need to display it in the workplace or offer it digitally. The HSE could also request to see it and so, should you fail to provide it, it could lead to you being met with a fine of £1,000.
So, if you do require it then HSE requires a minimum cover of £5 million although most policies will cover you up to £10 million as standard, however, carrying out a comparison with QuoteRadar.co.uk, will ensure that you find the right cover for your needs.
When do I actually need to have it in place?
You will only need to put it in place if you have people working for you or if you own less than 50% of the shares in your limited company. However, when it comes to freelancers, contractors or subcontractors, if they are working for your business then they are deemed to be an employee. Therefore, if you supply them with work materials, control how they work or treat them as if they are an employee, you will be required to have it in place.
You might be a sole trader and employ family members such as a son, wife or father and that does mean that you wouldn’t be required to have Employers’ Liability Insurance in place. However, what is vital is that this does not apply if you run a limited company because that would mean that you need to have it in place, regardless of how they are related to you.
Your business might only employ temporary workers or seasonal workers, if this is the case then it is irrelevant as you will still need to put insurance in place. So, if you employ them for one day or more, you are legally required to have the right cover in place.
So how much does it cost?
Just like any other kind of insurance, there are many different factors that determine the cover you need and how much it costs. This could include things such as the industry that you work in and how many employees you have working for you.
Often, it can be put in place as part of a package with other types of insurance including public liability and professional indemnity insurance and that can make it cheaper. However, as with all forms of insurance, it is always worthwhile comparing prices because that is the best way to find insurance that is tailored to you.