|
If you are running your own business - be it a shop, an office, a trade or even if you run a Home Business - then it is likely that you will have to have Employers' liability insurance. This is because the employers' liability (Compulsory Insurance) Act of 1969 requires most employers to insure against liability for injury or disease to their employees arising out of their employment.
Whether you have six or sixty employees, you are responsible for their health and safety while they are at work. And it's a sad reality that one or more of your employees may be injured while carrying out their jobs. It's then possible that they might try to claim compensation from you if they believe you are responsible. The Act ensures that you have at least a minimum level of insurance cover against any such claims.
Know the law
It's important to stress that, as the name of the Act implies, employers' liability is compulsory, unlike Public liability insurance, which is generally voluntary. You can actually be fined if you don't hold a current employers' liability insurance policy that complies with the law. You also need to make sure that any policy you take out insures your business for at least £5m, including costs.
When you take out or renew a business insurance 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 this certificate where your employees can easily read it.
On the surface it may seem that this law protects only the employee - and of course, if they have an accident at work, it does seem only fair that they should be allowed to make a claim. However, in truth, it also protects the employer, particularly the small- to medium-sized business.
Protect your business
Imagine that an employee had a serious accident at work and was unable to carry on working for a long time, even permanently, and they made a claim against your business. The compensation could run into tens of thousands of pounds. If you didn't have employers' liability insurance you would not only be breaking the law, but you would also have to foot the cost of the claim - which could very possibly put you out of business.
Having the right level of liability insurance can give you peace of mind that you are protected should a member of your staff have to make a claim against your business. Direct Line for Business offers £10m worth of employers' liability cover either as standard or as an option on all of our business insurance policies. This gives you substantially more cover than the legal minimum.
Use this website to find out more about our range of business insurance policies, which cover working from home, retailers, offices, pubs and restaurants, hotels and residential or commercial landlords - and see exactly what the standard and optional levels of insurance are.
Related information:
Dealing with staff - these are obvious places where accidents could occur and staff could get injured - make sure you have insurance, and try to prevent accidents in the first place.
Pub and Restaurant Insurance - these are obvious places where accidents could occur and staff could get injured - make sure you have insurance, and try to prevent accidents in the first place.
Public liability insurance - this is not compulsory by law, but any responsible business owner should have this type of cover in place.
Related articles:
| 
