It is a legal requirement to have adequate employers liability insurance if you have one or more employees, even if they are voluntary helpers, contractors or self employed, as long as they are working under your supervision – in fact, anyone working for you in connection with your business. The only exceptions where you may not need it is if you have no employees or you are a family business and closely related to your staff.
Employers are responsible for the health and safety of of their employees while they are at work – you may do your best to prevent accidents at work, but if an accident or illness does occur, your employee may try to claim compensation from you. Employers liability insurance would pay your compensation and legal costs if you are sued – the costs of defending a claim could damage or destroy your business.
Today, the no win, no claim culture encourages employees to claim for even trivial incidents such as a fall on a wet floor, and a claim can also be made if an employee believes that they have suffered illness as a result of working for you, even if the claimant has already left your employ – you need to be aware that former employees can still make a claim.
With employers liability insurance, you will be issued with a certificate to show that the company has purchased it.
Make sure you display it – it is a legal imperative.