Written by Michael Foote, Insurance Expert
Hiring staff changes your responsibilities
Whether it’s your first employee or an extra pair of hands during busy periods, bringing someone into your business means taking on new risks. In the eyes of insurers and the law, hiring staff changes how your business operates.
If your policy was set up when you were working alone, it may no longer offer the protection you need once another person is on the job.
Employers’ liability insurance is usually a legal requirement
If you employ anyone, even part time or temporarily, you are legally required to have employers’ liability insurance in place. This applies to permanent staff, apprentices, work experience students and sometimes even family members.
This type of cover protects you if an employee is injured or becomes ill as a result of working for you. Without it, you could face fines of up to £2,500 for every day you are not insured.
If your current policy doesn’t include it, or if your insurer is unaware that you now employ staff, you need to update your cover immediately.
Make sure your insurer knows how you operate
Insurers calculate your risk based on the information you provide when you take out the policy. That includes whether you work alone or manage a team.
If you hire staff but don’t inform your insurer, any claim involving those employees could be refused. Even if your work hasn’t changed, the fact that you are responsible for others is enough to trigger different terms.
It’s not just about legal liability
Adding employees can affect more than just liability insurance. You may also need to adjust your:
- Public liability cover if staff interact with the public.
- Tool or equipment cover if multiple people are using them.
- Business interruption cover if a claim would impact your payroll obligations.
It’s worth speaking to your insurer or broker when hiring to make sure your policy reflects the new setup.
Don’t wait for renewal to update your details
Some business owners assume they can wait until their policy renews to make changes. In reality, material changes like hiring staff should be reported as soon as they happen.
Leaving it too long could leave you exposed in the event of a claim.
Get your cover in line with your workforce
Hiring staff is a sign your business is growing. But growth comes with new responsibilities. Make sure your insurance grows with you, so that everyone under your roof is properly protected.
Compare quotes for your company that include employers’ liability and other essential protection.
