If you employ one or more staff members, even a family member, partner or spouse helping you on a part-time basis, you will require employers’ liability insurance by law.

What is Employers’ Liability Insurance?

Employers’ liability insurance exists to help pay compensation if an employee claims for injury or illness because of the work they do for you.

Claims can arise if, for example, there’s an accident and training was insufficient, or working conditions were unsafe, or equipment was faulty. Even something as simple as a slip on a wet floor can lead to a claim. This type of cover is essential financial protection for your business in case of such incidents.

What does Employers’ Liability Insurance cover?

  • Employee injury or illness – Your policy primarily covers you for compensation claims arising from employees who have suffered illness or injury because of work. Medical expenses arising from employee illness or injury are also covered, unburdening you from paying potentially huge bills
  • Legal expenses – Even if you’re confident that there’s no negligence on your part, you may still find yourself paying legal fees to defend yourself against the claim
  • Substitution clause – If you cannot carry out your work and use a ‘substitute contractor’ with the relevant skills and qualifications, you need employers’ liability insurance to cover any claims of injury from this substitute worker where you are held liable

How much Employers’ Liability cover do I need?

By law, an employers’ liability policy must carry a minimum indemnity limit of £5 million for any one claim. However, following the insurance industry standard, Kingsbridge issues EL insurance with a £10 million limit.

How much does Employers’ Liability Insurance cost?

At Kingsbridge, employers’ liability insurance is included within our contractors’ insurance package, meaning you benefit from multiple protection, all packaged in one policy.

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Why choose Kingsbridge?

Do I need Employers’ Liability Insurance?

Employers’ liability is a legal requirement if you employ any staff, including:

  • Freelance workers
  • Part-time workers
  • Volunteers
  • People on work experience
  • Family members helping with admin or clerical work
  • Substitute contractors (using a substitution clause)

Spouses, partners, and family members count as an employee if your business is incorporated as a limited company and you’re paying over the PAYE threshold.

Even if you don’t employ anyone right now, a client may require you to hold employers’ liability insurance to cover any contractual substitution clauses. And, of course, things can change very quickly in business. So, it’s worth future-proofing your enterprise, just in case you suddenly need to take on extra workers.

Why not get a quote now? Then you’re ready if things suddenly get busy.

 

Frequently Asked Questions

  • Is employers’ liability insurance a legal requirement?
  • Employers’ liability insurance is often required by law. If your business employs people on any basis, then you are likely to need a policy. You could receive a heavy fine for not having one.

  • Are substitute workers covered by employers’ liability?
  • If you have a substitution clause in your contract with your client, this allows you to send a substitute to work in your place if you are unwell and unable to work. Employers’ liability insurance covers this substitute worker if you are held liable for an accident or injury that they sustain in the workplace.

  • Why do I need Employers’ Liability Insurance if I don’t employ anyone?
  • Many clients require employers’ liability insurance as a legal, contractual obligation in order to address substitution clauses. You will also need the cover if you have any employees including a spouse, partner, or close family member in an administrative or clerical role within the business.