WHAT IS EMPLOYER’S LIABILITY INSURANCE?
Employers liability insurance protects businesses against legal costs and claims for compensation where an employee sues your company because their property has been damaged or they have been injured. This type of insurance is important for any business, as if an employee were to suffer from any injuries or illness due to work reasons, you as the employer could be held liable.
WHAT DOES EMPLOYER’S LIABILITY INSURANCE COVER?
Employers’ liability insurance will cover you if an employee makes a claim against you for costs and compensation that you are found liable for, up to your chosen limit of indemnity.
Please note that Rhino Employer’s Liability Insurance can only be purchased alongside our public liability insurance.
DO I NEED EMPLOYER’S LIABILITY INSURANCE?
If you have an employee, whether they are permanent, part time, or temporary, it is likely you will be legally required to hold employer’s liability insurance. It is not legally required if you are the sole employee of your limited company and own at least 50% of the shares. It may also not be required if you are not an incorporated business and employ only close family members. If you are unsure of your legal obligations to carry employer’s liability insurance, the HSE provide some guidance here.
HOW MUCH EMPLOYER’S LIABILITY INSURANCE DO I NEED?
By law, businesses in the UK are required to have cover of at least £5 million. Although depending on the type of work the business carries out, an employer may be required to carry a higher limit.
To work out how much insurance you need, it is a good idea to think about the type of activity you carry out and assess how much a serious claim could cost you.
Having cover provides reassurance and peace of mind as the cost of defending your business against a liability claim could be extremely damaging to your business, especially for those who are just starting out.
WHAT IS THE DIFFERENCE BETWEEN EMPLOYER’S LIABILITY INSURANCE AND PUBLIC LIABILITY INSURANCE?
Employer’s liability insurance covers you against claims made by your employees, whether they are temporary or permanent, and others you may have employed such as work experience students. However, Public liability insurance covers you for claims made by clients, members of the public or others on your site against damages or injury.
HOW DO I GET EMPLOYERS LIABILITY COVER?
We offer Employers liability insurance at great competitive rates along with our public liability insurance. To find out more please contact us today and one of our friendly team can help guide you.