Why choose Howden for Employers Liability Insurance?
Howden is the new name for A-Plan. As a broker which specialises in business and liability insurance, we pride ourselves on doing the heavy lifting, so you don’t have to. Thanks to the great relationships we have with our selected panel of standard and specialist insurers, we make the process of comparing multiple employers’ liability insurance policies, on your behalf, straightforward and easy. What’s not to like?
Here at Howden, we appreciate that each liability policy needs to be as individual as its owner and their business, and that’s why we provide a personalised, tailored service, focused on getting to know you and finding out exactly what you want from your cover.
Ultimately, just know, whether you need to make a claim, purchase employers’ liability insurance, or renew an existing policy, just know that we’re here to help.
Benefits of working with Howden:
- You can trust us – we’re rated Excellent on Trustpilot.
- We’re driven to save you time, money, and hassle.
- Benefit from a tailored service that comparison sites can’t provide.
- Speak with your local branch, within your community.
- We’re right by your side in the event of a claim.
What is Employers’ Liability Insurance?
Often, running a successful business or organisation relies on your employees, whether that’s a full-time team, temporary staff, or volunteer workers. However, if an employee gets injured or becomes ill as a result of working for your business, they may have a right to claim for compensation – and this can come at a high price.
Employers’ liability is a form of business insurance that covers you for compensation costs generated by your employees. It also provides options for wider support too, such as legal costs, protecting your company from the disruption caused by a claim and enabling you to carry on business as usual.
An employer’s liability insurance policy is also a legal requirement for any company that employs people, even if you have only one person employed.
Speak to us today and find out more about our tailored and flexible approach, as well as why we are perfectly placed to provide bespoke employers’ liability policies to suit your company’s needs.
Is employers’ liability insurance the same as public liability insurance?
The difference between employers’ liability insurance and public liability insurance is simple; an employers’ liability policy will cover you for claims made against you by an employee of your business, whereas public liability insurance will cover you against claims made by third parties, whether that be customers, suppliers or members of the public. It is also not a legal requirement to have public liability insurance, whereas you are required to have employers’ liability insurance if you’re an employer.
Despite their differences though, both are insurance products that can cover you and your business should compensation be needed. They can also be bought under a single business insurance policy if you wish, depending on the insurer.
What does employers’ liability insurance cover?
So, how can employers liability insurance protect you and your business?
To put it simply, employers’ liability insurance covers businesses for the costs generated from claims made by employees, which are usually caused by employer negligence. For typical employers’ liability insurance cover, an insurance provider would state a policy as covering businesses for:
- Compensation claims for work related illness or injuries
- Legal fees
- Health insurance payments
The compensation amount may be calculated to cover medical costs and lost income and, depending on the severity of the injury or illness, it could end up being worth thousands or even millions of pounds. This is exactly why it’s so important that every business is properly insured with employers’ liability insurance.
Do I need employers’ liability insurance?
Are you an employer? If you are, then yes you are legally obliged to have employers’ liability insurance to protect you and your business.
As well as that, you are expected to have a policy that’s provided by an authorised insurer and covers you for at least £5 million.
There are also consequences for not having appropriate employers’ liability insurance. For every day that you’re not properly insured, you could be fined £2,500, and if you fail to display your employers’ liability certificate in your business premises, you could also be fined £1,000.
The same fine applies for those who fail to show their certification to inspectors that ask to see it.
Who is exempt from employers’ liability insurance?
Not all businesses are required to have an employer’s liability insurance policy in place. These businesses include those that:
- Have no employees at all
- Operate as a family business that only employs family members
You can check whether your business would be deemed exempt from needing employers’ liability insurance by visiting the Health and Safety Executive (HSE) website.
How much is employers’ liability insurance?
How much employers’ liability insurance costs depends on several factors. Insurance providers will calculate your own, individual insurance premiums based on factors such as the type of business you operate, how many employees your business has, and the severity of the risks your employees face.
These factors, and many more, will help insurers understand the likelihood that your business will make a claim, and it is that likelihood that will determine how much your employers’ liability insurance will cost.
However, reducing the likelihood of a claim and potentially lowering the expense of your employers' liability insurance can be achieved by implementing measures to safeguard your staff. This might include ensuring proper training and supervision, as well as providing the necessary tools and safety wear.
You can find out a little bit more about the average employers’ liability insurance cost for businesses by, clicking here, and reading Howden’s own blog which covers the topic.
To find out exactly how much your employers’ liability insurance premiums would be, get in touch with us, either via our website by clicking ‘Get a Quote’ or by giving us a call on 01276 601690. We can help you get employers liability insurance that's affordable and doesn't force you to compromise on cover.
Do I need employers’ liability insurance as a sole trader?
As a sole trader, you’re not required to have employers’ liability cover, because you work by yourself and do not have any employees. You might be interested in getting public liability cover or professional indemnity insurance, however, to protect your business.
Do I need employers’ liability insurance for family members?
Belongs as you and your business only employ close family members, then no, employers' liability is not compulsory insurance.
Do I need employers’ liability insurance for a limited company?
If you run a limited company that employs one or more people, then yes, you are required to have employer’s liability cover. Any limited companies that have no employees though, are not required to have employers’ liability cover.
Do I need employers’ liability insurance as a director?
No, because directors are technically classed as an employee of a business, so they do not need to have this insurance coverage.
Do I need employers’ liability insurance as a contractor?
You only need an employers' liability policy as a contractor if you employ someone, whether that be on an employee permenant basis, or whether you're employing a part-time sub-contractor. Otherwise, if you don't have any employees, then you're not legally required to have employers' liability cover.
Does employers’ liability insurance cover volunteers?
This can depend on the insurance provider and their terms, but normally, this policy will cover the cost of employers' liability claims made by volunteers.
Businesses should make sure that their policies are able to compensate volunteers as they would be able to compensate employees too.
Does employers’ liability insurance cover working from home?
Most businesses in the UK now have staff working from home, and they must show those employees the same legal duty of care as they do for their employees that work on business premises. Employers' liability cover allows businesses to do this, to protect members of their team that work from home.
Is employers’ liability insurance the same as workers compensation?
Workers compensation differs from employer’s liability cover in that it covers accident-related costs which do not put any liability on the employer, whereas employers’ liability covers the employer if they are in any way responsible for the accident that happened.
Essentially, both products provide support for workplace accidents, but employers’ liability is a little bit broader and kicks in as soon as the employee believes the employer should be held liable for negligence.
Do you have to display employers’ liability insurance certificate?
Yes, you must display your employer’s liability insurance certificate on your business premises, else, you could be fined £1,000.
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