Why do I need Employers Liability insurance?
Employers Liability (EL) insurance covers you in the event that an employee becomes sick, injures themselves or dies as a result of your employment. As mentioned previously, EL insurance is a legal requisite if you employ any staff. This includes temporary or holiday labour as well as salaried staff and you must obtain cover with a minimum value of £5m.
The only exceptions to this are if your employees are all family members or if they all work abroad.
If you fail to have this insurance in place you are liable for a fine of £2,500 per day for the period that you are not covered.
You will be granted an EL certificate when this insurance is granted which you should display at your premises. As a minimum you must have the certificate to hand if you are inspected. Failure to do so could result in a fine of £1,000.
Please note that you should keep all records related to this cover going forward. It is possible for ex-employees to bring claims against your business many years after they have left your employment.
For more information contact the Business Insurance Service on 01273 789979 for a no obligation discussion.