Almost all UK companies need employer’s liability insurance in the occurrence of any claim or law suit filed against them by an employee or ex-employee who has suffered an injury or illness because of their work. Not only is it required by law in order for your business to operate within legal parameters within the UK, if a claim should ever be made against you, not having insurance could see you have to fork out large sums of money and put the future of your business in jeopardy.
Liability insurance is there as a protection for all businesses of varying sizes and operations because you never know when a claim may be filed against you. You may feel that you don’t require liability insurance as you will never face a claim, but having insurance is the back up support every business needs to operate comfortably.
Employer’s liability insurance will cover any compensation costs that your company may incur as well as recuperating any expenses paid out in the legal defence.
Do I Need Employer’s Liability Insurance?
Employer’s liability insurance is a necessity for almost any business that hires at least one member of staff, either in full or part-time employment. The recommended level of coverage is at least £5 million; without coverage, your company can face fines of up to £2,500 per day.
How do you know if your company needs employer’s liability insurance?
Well, if your company deducts National Insurance contributions and Income Tax from the money you pay your employees; provides most of the equipment and materials used; controls where, when and how your employees work or has the right to claim profit made by your employees then you require employer’s liability insurance by law.
There are certain exceptions that you should be aware of: any public organisation and business may be exempt from employer’s liability insurance if the only people in their employment are close family members who aren’t incorporated as limited companies. There are also exemptions for those that hire independent contractors through another organisation.
Why Compare Employer’s Liability Insurance Quotes?
We understand that small businesses face rising costs in almost every area, and therefore require affordable insurance costs that aren’t going to financially damage them. Being on the wrong insurance policy is an easy way for a company of any size to waste money and with so many insurance companies out there, all vying for your attention, it is as important as ever to compare providers to find the policy that is best for you.
Many companies don’t realise that they are paying over the odds for their insurance policies, and as they are a necessary acquisition, albeit that it may never be required, it is important you aren’t paying extravagant amounts year after year to obtain it.
Determining Your Employer’s Liability Insurance Costs
Policies are determined by a range of factors. When you compare employer’s liability insurance with us you can determine the exact insurance quote that suits you depending on your situation.