Understanding employer's liability insurance

What is Employers' Liability insurance?

Employers' liability insurance provides cover against claims by employees who have suffered an injury or illness in the course of their employment. For example, if an accident occurs because health and safety rules have not been implemented.

The Employers' Liability (Compulsory Insurance) Act 1969 (ELCA) makes it compulsory for employers to have employer's liability insurance. You can download a full guide to the ELCA at www.hse.gov.uk/pubns/hse40.pdf. This guide includes details of what counts as an 'employee' and organisations that are exempt from the ELCA. - for example, health service bodies and some family businesses.

How much employer's liability insurance do I need?

It is compulsory to have at least £5m of Employers' Liability insurance. Direct Line's policy provides £10m of cover.

Do I need to tell employees about this insurance?

When you take out or renew a policy you will be issued with a certificate of Employers' Liability insurance. This will state the minimum level of cover provided and the companies covered by the policy. You need to display a copy of this certificate where all your employees can read it and make it available to be checked by Health and Safety Executive Inspectors or face being fined up to £1000. You also need to retain copies of certificates of insurance for at least 40 years (for policies in force since 1998 or later). This is for your own protection as some diseases can occur many years after the disease is caused.

What businesses does Direct Line cover?

In 2007 we launched Direct Line for Business with the aim of providing comprehensive business insurance to a range of trades, occupations and professions. We currently offer Employers' Liability cover in eight of our business insurance products, either as part of our standard cover or as an optional extra as per the list below. In all cases this provides up to £10m of cover against compensation claims by your employees in the course of employment where you are held legally liable, as well as expenses and legal costs arising from such an injury. For more information on the terms and conditions of our Employers' Liability insurance, see the information and online policy document for each type of cover.

How can I take out Employers' Liability insurance with Direct Line?

You can apply for any of our business insurance products quickly and easily online. When you apply for a quote you will be asked certain questions about you and your business and a premium will be worked out from this information. In respect of Employers' Liability insurance, we may consider the type of business you have, the size of payroll, the number of employees, what kind of liability claims record you have had and your health and safety record. You can find more details in our policy documents. But if you want to discuss it further then just give us a call.

It's quick and easy to get Employers' Liability insurance with Direct Line for Business. Don't delay or you could risk some hefty fines. Simply apply for a business insurance quote today.