What Is Employers’ Liability Insurance?
Employers’ liability insurance (also known as EL insurance) is a form of insurance that helps cover any damages, legal fees, or compensation costs that employees may be entitled to due to illnesses or injuries that occur when they are at work.
It’s a legal requirement to have employers’ liability insurance in place if you employ even one person. Accidents can happen at any time – for example, someone may slip on a wet floor, or injure themselves on a construction project.
Employers’ Liability Insurance: What Does It Cover?
Dedicated employers’ liability insurance helps to cover:
- Compensation – If an employee, current or former, proves that their illness or injury was caused by work, they’re entitled to compensation. EL insurance covers the cost of compensation so you won’t have to pay out of pocket.
- Legal Fees – If you have to defend against any claims made against you, employers’ liability can cover your legal fees.
- Medical Fees – Employees who become sick or injured from your business activities may be entitled to medical care, which you may be liable to pay for.
- Claims From Former Employees – Illnesses can take a while for symptoms to develop, so there is a chance that former employees might make a claim against you. EL insurance from Wentworth Alexander can cover this eventuality – simply get in touch with us.
Depending on your scope of cover, employers’ liability insurance covers:
- Full-time employees
- Part-time employees
- Self-employed contractors you hire
- Temporary staff
- Volunteers
- Apprentices
- Anyone taking part in work experience teams
Our clients include:
Key sectors
Automotive
Woodworking
Chemical
Electrical &
Electronics
Fashion & Footwear
Food & Drink
Plastics
Additive
Manufacturing
Metal
Fabrication
Creative/Digital
Agencies
Software Development
IT Service
Providers
Employers’ Liability Insurance & Public Liability Insurance: What’s The Difference?
While employers’ liability insurance covers any claims from employees, public liability insurance covers claims from third parties who are injured in the course of your business activities.
Who Needs Employers’ Liability Insurance?
Employers’ liability insurance is a legal requirement so the majority of businesses small and large need employers’ liability insurance in place. Failure to do so could result in you being fined £2,500 for every day you don’t have it.
Some businesses are not required to have employers’ liability insurance, including:
- Companies with no employees
- Family businesses that employ only family members
Employers’ Liability Insurance With Wentworth Alexander
Employers’ liability insurance is vital for your business, so don’t neglect it. We’re here to help you find the right insurance solutions for your business. At Wentworth Alexander, we put our clients first, and pride ourselves on sourcing competitive rates and comprehensive solutions.
Get in touch today for a tailored quote based on your needs.
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Our team is ready to help you find the right insurance solution. Speak to our specialists today to discuss your insurance needs.
Our team will be happy to help and provide you with the advice you need.
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Employers’ Liability Insurance FAQs
Do I Need Employers’ Liability Insurance?
If you’ve set up a business and hired a full-time or part-time employee, or a freelancer or contractor, you legally need employers’ liability insurance.
How Much Does Employers’ Liability Insurance Cost?
The cost of employers’ liability insurance varies from business to business, depending on the number of employees you have, your previous claims history, and your business type.
For a bespoke quote, get in touch with Wentworth Alexander today.
Is Employers’ Liability Insurance A Legal Requirement?
Yes, in the UK, it’s a legal requirement to have EL insurance in place, in accordance with the Employers’ Liability (Compulsory Insurance) Act 1969. There is also a minimum level of cover of £5 million required by law, but many insurers provide £10 million as standard.
Are There Penalties For Not Having Employers’ Liability Insurance?
Yes – if you don’t have EL insurance in place, you could face a fine of £2,500 per day from the HSE for every day you are uninsured.
Who Is Exempt From Employers’ Liability Insurance?
There are some exemptions from employers’ liability insurance:
- Companies with no employees
- Family businesses that employ only family members
If you’re unsure whether you need EL insurance, get in touch with Wentworth Alexander today. Our team will sit down with you and determine the right insurance types you need.