Almost all UK companies need employer’s liability insurance in the occurrence of any claim or lawsuit filed against them by an employee or ex-employee who has suffered an injury or illness because of their work. It is required by law for your business to operate within legal parameters within the UK. If an employee should ever claim 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 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 backup support every business needs to operate comfortably.
Employer’s liability insurance will cover any compensation costs your company may incur and recuperate any expenses paid out in the legal defence.
Do I Need Employer’s Liability Insurance?
Employer’s liability insurance is a legal requirement for almost any business that hires at least one staff member, 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?
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.
You should be aware of certain exceptions: any public organisation and business may be exempt from employer’s liability insurance if the only people in their employment are close family members and the company is not incorporated. 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 damage them financially. Paying too much for insurance is an easy way for a company of any size to waste money. With so many insurance companies out there, all vying for your attention, it is as important as ever to compare providers to find the best policy for you.
Many companies don’t realise that they are paying over the odds for their insurance policies.
Determining Your Employer’s Liability Insurance Costs
A range of factors determines the cost of an insurance policy. When you compare employer’s liability insurance through Quote Goat, you can choose the exact policy that suits your requirements.