What is Employers’ Liability Insurance?

Employers’ Liability Insurance is designed to protect businesses if an employee claims compensation for illness or injury suffered as a direct result of their work. This insurance safeguards businesses by covering legal costs and compensation payments that may arise if an employee is injured, falls ill, or suffers from a health issue related to their job duties.

In the UK, this insurance is mandatory for most businesses under the Employers’ Liability (Compulsory Insurance) Act 1969. If you don’t hold valid employers’ liability insurance you could be fined up to £2,500 for each day you go uninsured.

What does employers’ liability insurance cover?

Employers’ Liability Insurance protects your business from a wide range of financial risks related to employee claims. This insurance typically includes cover for:

• Compensation claims: Pays for the costs associated with employee injury or illness claims resulting from accidents or conditions directly related to their work.
• Legal fees: Covers the legal expenses involved in defending your business if an employee files a claim against you.
• Medical costs: Helps cover medical expenses or rehabilitation costs that may be required by employees recovering from work-related injuries.
• Settlements and awards: Covers the settlement or court-awarded compensation amounts, preventing these costs from impacting your company’s financial stability.

At Acer Insurance, we understand that every business is unique. That’s why we will work with you to find the appropriate level of Employers’ Liability Insurance cover to meet your business specific needs.

Do I need employers’ liability insurance?

Every business that employs staff, whether full-time, part-time, temporary, or even contractors, has a responsibility to provide a safe working environment. However, accidents and injuries can still happen, and if an employee is injured at work, your business may be liable to pay compensation. employers’ liability insurance not only meets legal requirements but also provides essential financial protection, safeguarding your business’ assets and reputation.

It is important to note, that without this insurance, your business would have to bear the financial burden of any claims, which can be costly and disruptive. Having employers’ liability insurance reassures employees that their well-being is valued, potentially improving employee retention and creating a safer, more productive workplace.

There are a few exceptions where employers’ liability insurance is not required if:

• You run a family business and all your employees are related to you and the business is not a limited company.
• You run a Limited Company and you are the only employee.
• You only employ independent (self-employed) contractors.
• You only employ staff that are based abroad.

These are just a few examples of the exemptions, so if you’re not sure if your business is exempt, then please speak to us and we’ll be happy to help.

How much employers’ liability insurance do I need?

In the UK, businesses are legally required to have at least £5 million in Employers’ Liability Insurance cover, although many insurers offer standard policies with £10 million in cover. This level of coverage is designed to meet the needs of most businesses, taking into account the potential costs of legal fees, compensation claims, and medical expenses in cases of employee injury or illness.

The amount of cover your business needs can depend on several factors, including the nature of your industry, the number of employees and their type of employment and risks specific to your business operations.

But don’t worry, our experienced team will work with you and help you determine the right amount of cover to stay compliant and protect your business.

Does employers’ liability insurance cover third parties?

No, employers’ liability insurance covers against allegations of injury or illness suffered by employees arising from their employment with you.

Public liability insurance on the other hand, covers against allegations of injury or illness suffered by third parties (such as members of the public or clients), or damage to third party property, because of your negligence. Public liability insurance doesn’t cover your employees.

Both covers are important for a comprehensive risk management strategy, but each serves a distinct purpose.

If you’re unsure which cover your business needs, our team at Acer Insurance can help you understand the requirements and find the policies best suited to protect you, your employees, and the public.

Why choose Acer Insurance for Employers’ Liability Insurance?

Navigating insurance requirements can be complex, but at Acer Insurance, we specialise in guiding businesses like yours through every step of securing employers’ liability insurance. With our expertise, we can ensure that you stay compliant, protected, and focused on what you do best: running your business.

Contact us for a quote today

Call 01959 528435 for an immediate quotation or leave your details below and one of our experienced team members will call you back.