Since 1969, Employers Liability has been a compulsory insurance for any business with employees. If one of your employees falls ill or injures themselves whilst in your employment and believes that you are responsible, they may try to claim compensation from you.
Often businesses aren't aware that labour only sub-contractors also fall into the category of an employee so it is important to make sure you have cover in place, even where you don't always directly employ your staff.
There are a couple of exceptions to this rule for businesses such as:
Family Run Businesses that only employ family members
Companies only employing their owner
Public Organisations such as Local Authorities
How Much Cover Do I Need?
By law, you must have £5million worth of cover, however most insurers will give £10million as a standard.
If you are found to not have Employers Liability where you should, you could risk being fined up to £2,500 every day you are without suitable insurance. Even not displaying your certificate in the work place or refusing to make one available to a HSE inspector can lead to fines up to £1,000.
If you have any questions about your policy or would like some further advice about what Addingstone can offer you, please get in touch with us on 03458622727.