Employer Liability

Why would you need or want Employers Liability insurance, well, most employers are required by the law to insure against liability for injury or disease to their employees arising out of their employment.  also the time and  cost of defending a claim could be very expencive.

Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.

Employers’ liability insurance will enable you to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site. However, any injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.

Public liability insurance is different. It covers you for claims made against you by members of the public or other businesses, but not for claims by employees. While public liability insurance is generally voluntary, employers’ liability insurance is compulsory. You can be fined if you do not hold a current employers’ liability insurance policy which complies with the law.

Employer’s liability insurance – what does it cover?

If you have employees, there is a chance that they may become injured at work or become ill as a result of working for you. If this happens, they might be entitled to claim compensation. Employers’ liability insurance covers this cost.

An example of a situation where you would need to claim on your employers’ liability cover would be if an employee is injured while working on machinery without the proper safety precautions.

It also covers claims for employee illnesses that have been contracted as a result of working for you, even if they manifest after the person has left your employment. For this reason, you must keep on file all documentation related to your employers’ liability insurance, even if it has expired.

Employers’ liability insurance is a legal requirement for any business which has one or more employees, and there is a £2500 fine per day if you do not have it.

ref: Employers’ Liability

(Compulsory Insurance) Act 1969
A guide for employers
This is a web-friendly version
of leaflet HSE40(rev3)

http://www.hse.gov.uk/pubns/hse40.pdf

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