You require employers’ liability insurance if your business employs anyone. In the UK, employers’ liability insurance was made a legal obligation back in 1969.
According to the UK government, you must take out employers’ liability insurance as soon as you employ one or more individuals. Your insurance package must cover you for a minimum amount of £5 million and it should be obtained from an authorised insurer.
Any employer who fails to comply with these rules may have to pay hefty penalties. You could be fined £2,500 per day if you have not taken out employers’ liability insurance. You could also be fined another £1000 for not possessing or failing to produce employers’ liability certificate in front of inspectors.
You may not be legally required to have employers’ liability insurance if:
• You own a company with no employees
• You run a family business and employ family members only
• You employ someone who is based abroad
Employers’ liability insurance packages by IC Insurance provide all-round cover for claims brought by:
• All your permanent employees
• Contract, casual and seasoned employees
• Labour-only subcontractors
• Temporary staff such as students and interns
• People on work placements
• Volunteers
• Advisors
• Referees and marshals
• People on work placements
