We’re currently in the process of reviewing and renewing our Employers Liability Insurance, let’s discuss why this cover is so important – and compulsory!
The cover is in place to ensure that any employee who successfully sues their employer will be financially compensated irrespective of the financial position of the employer. So should the employer breach their care of duty to the employee, the employee can feel suitably comfortable that their claim will be paid out in full. As well as cost of the compensation claim being covered, the insurance the covers the cost of legal fees for the court case.
As a result of it’s importance the Employers’ Liability (Compulsory Insurance) Act makes it compulsory for all businesses to have (there are few organisations who are except).
The HSE guidance on the insurance can be found here http://www.hse.gov.uk/pubns/hse40.pdf
The maximum penalty for for not having your Employers Liability Insurance in place is £2500 for each day you are without cover! A fine which will make all businesses take note.
To ensure that both your company and your employees are suitably covered by the Employers Liability Insurance you must make sure that your policy is adequate and appropriate for your business and it’s risks. When you are applying for your insurance you must spend time carefully discussing your statement of fact with your insurer so that the understand your business operations and the risks involved.
If necessary you can have more than policy, the total value of the policies must be a minimum of £5 million.