Employers Liability Insurance

This section provides answers to the following questions:-

What does Employers Liability Insurance do?
Why Compare Employers Liability Insurance with Coverzones?
Why is Employers Liability Insurance Needed?
Who is an ‘Employee'?
What Cover does an Employers Liability Policy Provide?
Does a Small Business Need Employers Liability Insurance?
How Much Employers Liability Cover Will My Business Need?
Compare Employers Liability Insurance Policies Now

What does Employers Liability Insurance Do?

Employers Liability Insurance helps businesses to meet the cost of compensation for injuries to their employees sustained while at work.

Why Compare Employers Liability Insurance with Coverzones?

Coverzones can save you time and money on your Employers Liability insurance. We compare the Employers Liability insurance policies of the major commercial insurance companies to find you the right cover at the right price.

Coverzones makes it quick and easy to get the best Employers Liability quote and then buy it and manage it through our secure website. You can save and change your Employers Liability quote through your own, free MyCoverzones account.

Coverzones can help cut Employers Liability insurance costs dramatically - get an Employers Liability insurance quote now.

Why is Employers Liability Insurance Needed?

Over the past decade there has been a huge increase in litigation and record-breaking court awards.

Businesses have sustained substantial losses arising from their responsibilities in respect of the health and safety of their employees while they are at work. There is a chance that your employees may be injured at work, or that they, or your former employees, may become ill as a result of their work while in your employment.

As a result of this, your current or past employees might try to claim compensation from you if they believe you are responsible. In this event, an Employers Liability Insurance policy will help to meet the costs of the claim for compensation.

Employers Liability insurance became a legal requirement in 1972 as a direct result of the Employers Liability (Compulsory Insurance) Act 1969. If you are visited by the Health and Safety Executive they will request your certificate of Employers Liability Insurance. If you are unable to produce a certificate for them they can fine you £1000 and they can fine your business £2,500 for every day you are without suitable insurance.

Click to compare the market for employers liability insurance now.

Who is an ‘Employee'?

The definition of an employee is anybody you have on your premises who is assisting you in your work. It may be on a part-time basis, a full-time employee, students on work experience courses, a self-employed sub-contractor, a person working on a trial basis to see if they are suitable, and even voluntary workers. They are all technically employed by you, because they are under your instruction and working on your premises.

You may be exempted from having Employers Liability insurance where all your business' employees are close relatives and the business itself is not incorporated as a limited company. Similarly, companies where the owner is the sole employee, and owns at least 50% of the company's issued share capital, may well also be exempt. You should check if you think that this may apply to you.

Click through and compare employers liability insurance quotes now.

What Cover Does an Employers Liability Policy Provide?

A standard Employers Liability insurance policy will cover you for claims made against you if an employee is killed, injured, or contracts an illness or disease whilst working for you in connection with your business.

It also covers you for the costs and expenses incurred by the claimant as well as your legal costs. You will also be covered for costs and expenses incurred in the defence of a prosecution relating to the welfare of employees under the Health and Safety at Work Act 1974.

Does a Small Business Need Employers Liability Insurance?

If any of your employees are normally based in England, Scotland or Wales (including offshore installations or associated structures) you must have Employers Liability insurance. The Employers' Liability (Compulsory Insurance) Act 1969 requires you to have at least a minimum level of insurance cover.

You do not need Employers Liability insurance to cover any of your employees who are based abroad, even if they are only on secondment.

You should check whether the law in the country where they are based requires you to take out insurance or take any other measures to protect your employees.

If any of your employees are normally based abroad but spend more than 14 days continuously in Great Britain, or more than seven days on an offshore installation, you will need Employers Liability insurance.

Under certain circumstances your business may be exempt from having to have Employers Liability Insurance.

Primarily, exempt businesses include public organisations (which include government departments, local authorities, and others); health service bodies; some other publicly funded organisations; family businesses which employ only closely related family members, and are not incorporated as a limited company; and companies where the owner is the sole employee, and owns at least 50% of the company's issued share capital. All other organisations are legally bound to buy a policy.

The Health and Safety Executive guide to Employers Liability will help you work out whether this applies to you and you can download the guide from the Health and Safety Executive website.

Businesses based in Northern Ireland will require Employers Liability insurance unless exempt. To find out whether this applies to your business, you should read the regulations on the Office of Public Sector Information website.

If you are not sure about whether you may be exempt from the requirement to obtain Employers Liability insurance you may wish to seek legal advice.

Compare employers liability insurance quotes now.

How much Employers Liability Cover will my Business Need?

You must be insured for at least £5 million, and in practice most insurers offer cover of at least £10million. You should look carefully at the risks and liabilities that your business faces and consider how much cover you need.

If your business is part of a group, a policy for Employers Liability insurance can be taken out for the group as a whole. In this case, the group as a whole, including subsidiary companies, must have cover of at least £5 million.

You can have more than one Employers Liability insurance policy, but the total value of the cover provided by the policies must be at least £5 million. You should bear in mind that the £5 million minimum level of cover includes the costs of things like legal action, so you may wish to purchase a higher level of cover.

When you take out or renew a policy, your insurer will give you a certificate of Employers Liability insurance. This must state clearly the minimum level of cover provided and the companies covered by the policy. You must display a copy of the certificate of insurance where your employees can easily read it.

Compare Employers Liability Insurance Policies Now

With Coverzones you can compare Employers Liability Insurance quotes from a variety of the UK's leading insurers free of charge. Simply complete the online quote form, telling us about your particular business needs, and we'll do the rest for you.

Coverzones provides more than free online quotes. Our service also allows you to buy the policy of your choice from your preferred insurer through a secure MyCoverzones account. Account facilities include 24/7 access and the ability to amend, renew and cancel any policy purchased with Coverzones.

Below are some example trades that may require employer's liability insurance: