Employers’ liability Insurance is actually a legal requirement to follow when you employ staff in the UK. No matter you have a team of 10 employees or 1000, if you don’t have the Employers’ liability Insurance at place, you are breaking the law. You are not just breaking the law by not putting the Employers’ liability Insurance into place, but also leaving yourself vulnerable to being sued by your staff.
Why Is Employers’ Liability Insurance Necessary?
Importance of Employers’ liability Insurance is greatly realized when one of your staff members is injured or fall ill at work. If this staff member takes the matter further to the court and asks for the compensation, its cost can be covered through Employers’ liability Insurance.
The employee liability insurance is meant to protect the employers against the claims in respect to their legal liability for the injuries sustained by their employees during the course of their employment. Under the Employers Liability, all employers are subjected to hold employers liability insurance. However, there are some limited exceptions to this requirement and these include…..
- Limited companies and incorporated bodies, where the only employee owns around 50% of the equity in the business.
- Non-incorporated businesses that employ only close family members in their companies like spouse, son, daughter, grandson etc.
- Public service bodies and certain other prescribed organizations.
Who Are Considered As An Employee?
In some cases, it can be pretty confusing to make sure whether or not someone you work with is technically your ’employee’. A person may qualify as an employee if….
- You have control over where, when and how they work.
- You provide equipment and materials for them to work with
- You take N.I. and income tax from money you pay them
- They are then only person who can perform the role you require and cannot employ a substitute.
- They are treated in the same way as your other employees.
Where to Get Employers’ Liability Insurance?
Employer liability insurance can be availed from a range of direct insurance companies operating across the United Kingdom. As a matter of fact, there are a number of companies that deal with providing such insurance but before you finalize your decision of buying the insurance from a certain source, make sure that the company is working in accordance with the Financial Services and Markets Act 2000. If you count on an invalid or unauthorized service provider, your insurance will not be recognized.