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How the Employers' Liability Act Impacts Business Insurance

Rhino Trade Insurance 14 January 2024

Today, we're diving into business insurance, focusing our lens on a crucial player in the game - the Employers' Liability Act. In this article, we'll look at how this legislation influences the insurance landscape for trade businesses. So, whether you're an experienced tradesman/ woman with many employees under you, or just starting your business journey, join us as we simplify the impact of the Employers' Liability Act on your business insurance.

The Foundation of Security for Employees

Enacted in 1969, the Employers' Liability Act mandates that employers maintain insurance to cover potential liability for injury or illness suffered by employees during the course of employment. This insurance is called Employer’s Liability Insurance.

Understanding the Act:

The Employers' Liability Act holds employers accountable for the health and safety of their workforce. It ensures that it’s written into UK law that financial provisions are in place to compensate employees who suffer injuries or illnesses arising out of their employment.

Impact on Business Insurance:

Financial Stability:

Employer’s Liability Insurance ensures a business can cover the costs of compensation claims. Employers must secure adequate coverage (a minimum of £5million by law) to meet the potential costs of compensation claims. This not only ensures the workforce is covered, but also safeguards the financial health of your trade business as you won’t have to pay out of pocket for claims. 

Risk Management and Prevention:

The Employers' Liability Act should be considered as part of an overall culture of risk management and prevention within the trades. Businesses should implement strong safety measures, training programs, and equipment maintenance protocols. Insurers like Rhino Trade Insurance work hand-in-hand with trade businesses and employers to identify potential risks, encouraging a proactive approach that benefits both parties.

Tailored Coverage for Varied Trades:

Every trade comes with its unique set of challenges and risks. Rhino tailors coverage to address the specific needs of different trades so that you don't have to shop and 'bodge' your cover. This customisation ensures that tradespeople are not only protected by the umbrella of the Employers' Liability Act but also by policies that align with the features of their work.

Employee Wellbeing and Morale:

A workforce that feels secure is a motivated and productive one. The Employers' Liability Act, by guaranteeing compensation for workplace-related injuries or illnesses, contributes to the overall well-being of tradespeople. This sense of security resonates through a team, building a positive work environment and boosting morale.

Case Study: Dave The Carpenter

Let's imagine Dave, a skilled carpenter, building bespoke furniture. One day, a mistake happens, and Dave’s assistant is injured while working.

In a world without the Employers' Liability Act, Dave's small business could face crippling legal and financial consequences. However, thanks to the Act, Dave had secured comprehensive insurance coverage with Rhino tailored to the risks associated with his business. The injured worker received the very best care and rehabilitation, and the insurance coverage ensured that the financial burden did not fall on Dave's shoulders. 

Navigating the Insurance Landscape:

For tradespeople navigating the insurance landscape, the Employers' Liability Act marked the beginning of clearer rules for liability when accidents happened at work. However, understanding the finer points of insurance can be mind-boggling. Never fear, though; the experts at Rhino Trade Insurance have distilled all of the nitty-gritty information and made trade insurance as understandable and transparent as possible - all at an amazing price!

Choosing the Right Coverage:

Selecting the right insurance coverage is like choosing the right tool for the job. Tradespeople can talk to our helpful policy experts to understand what coverage they need. We will identify any unique risks associated with your work and tailor a package that is fit for a king (or tradesperson). When it comes to Employers Liability Insurance, Rhino offers brilliant packages for all business sizes. You can get up to £10 million in liability for your employees - you won't have to worry about anything going wrong on-site with our cover. 

Claims Process Demystified:

The claims process, which can be a pain, is far easier with Rhino. As Employers Liability is a legal requirement in the UK, an easy way to claim is key.  Our team is available six days a week to answer any of your questions if you can read up all about our process here

Looking to the Future

The landscape of business insurance for trades in the UK is always changing, shaped by different governments, technological advancements, legal changes, and the general nature of trades. Let's talk about what could change the Employment Act in the future:

Technological Integration:

The integration of technology into the trades opens new avenues for insurance. From the Internet of Things, tracking tools and AI-driven risk assessments, technology has become a proactive ally in safeguarding businesses. Getting your coverage could become even easier in the future, or with certain changes, you could simplify your processes, saving time and giving you more chances to work on bigger projects.

Legal Updates:

Staying abreast of legal changes is always a good idea. The Employers' Liability Act may undergo modifications at some point in the future to adapt to the evolving landscape of work, so make sure you’re always up to date. 

Get Your Employers Covered With Rhino 

So there we have it, the Employment Liability Act and how it affects trade businesses around the country. For tradespeople, understanding the impact of this legal framework on business insurance is an important part of being an employer.

Don't risk your employees, your business or your customer relationships. If you have employees and need cover, get it sorted today. It's better to be safe than sorry, and Rhino Trade Insurance can easily help you out with rock-solid insurance policies. Just call our team on 0116 243 7904 or visit our website for a super-quick quote

About The Author Phil McCormick

Experienced in brand marketing and content. Most of that lovely communication you see online will be from Phil. social media, emails, videos, how to make a bacon sarny? You get the gist!

Trade most identified with: Electrician - It’s our Phil’s job to map out all our communications and make sure the signal works! Also, he’s one of the cockiest blighters in the team so electrician fits perfectly!

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