To protect workers, Employers Liability for almost all employers is compulsory and was established under the Employers’ Liability (Compulsory Insurance) Act 1969. If an employer fails to obtain Employers’ Liability, they can be fined £2,500 for each day they are without it.
Employers’ Liability is usually required for all employees, whether they are full-time, part-time, students on work experience, volunteers, temporary workers or labour only contractors. Even if you only employ one person, you’ll still need Employers’ Liability.
As with most things, there are some exceptions – certain types of subcontractors, where you only employ a family member or staff that are based abroad don’t usually need be included for Employers’ Liability considerations.
Should one of your employees become ill or sustain an injury in the course of their duties, it’s possible they’ll want some sort of compensation or re-imbursement for any medical costs. If they decide to pursue a claim against you as their employer, and you are found to be negligent, it could result in you being liable for legal fees, court costs and compensation awards. Having suitable Employers’ Liability insurance will pay for this.
Labour only subcontractors vs bona-fide subcontractors
Labour only subcontractors use your tools materials, follow your guidance and work under your direction.
They are legally classed as employees and as such, they need to be covered by your employers’ liability policy.
In contrast, subcontractors who are classed as ‘bona-fide’ provide their own tools, materials, and work under their own direction; they don’t usually need to be covered by your employers’ liability policy.
Check the legislation on this if you’re not sure what type of contractor you’re engaging, visit the HSE site for more info.
How do I get a quote for my Employers' Liability Insurance?
We don’t ordinarily provide Employers’ Liability policies on their own, it is usually provided as part of a package, for example a policy for a shop, restaurant or office.
If you’re a trades person and have employees, we can provide you with employers’ liability alongside one of our public liability policies. Getting a quotation is easy, either give us a call on 0345 504 0353 or just complete our brief fact find and we’ll contact you at convenient time to arrange the quotation.
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