What is employer’s liability insurance?
Employer’s liability coverage is a legal requirement for any business that employs a team of staff. This protects you from any compensation claims related to illnesses and injuries sustained by employees during working hours. Though you’d normally be burdened with these costs yourself, an employer’s liability insurance policy covers these expenses, allowing you to keep your business’s finances intact.
Why do you need employer’s liability insurance?
When you work as a tradesman, you know that every job comes with its own risks. Even if you follow every safety precaution to the letter, all it takes is a few loose bricks, or an unknowingly faulty piece of equipment for an employee to become seriously injured. For example, someone in your team could be electrocuted while rewiring a house, or break their leg after tripping over a toolbox.
You could be liable to pay financial compensation for accidents like these, as well as repetitive strain injuries or any musculoskeletal conditions your employees may develop over time.
Any resulting claims would likely be hugely expensive, which is why it’s in your best interest to arrange appropriate cover to ensure your livelihood won’t suffer if the worst ever happens, making employer’s liability insurance an essential policy for any business.
Please note that unlike public liability, employer’s liability insurance is not an automatic cover, but can be added to any standard Tradesman Saver policy.
Tradesman Saver’s Employer’s Liability Cover
Our Employer’s Liability cover includes:
- Up to £10 million cover any one claim
- Optional cover for working partners
- Temporary staff can be covered for up to 75 man-days
- Cover for bona-fide sub-contractors up to 25% of turnover
Our employer’s liability insurance is automatically activated from the moment you purchase it, with an indemnity limit of £10 million. This is the most we will pay out in a single claim. You can even protect working partners and temporary staff as optional extensions to your employer’s liability coverage.
We offer employer’s liability insurance as an optional cover for the self-employed, which you can purchase on top of our standard public liability policy. This is one of the most important protections a business owner can have in place, as it safeguards against any claims resulting from personal injuries to a third party, or property damage. Unexpected accidents happen all the time. For example, a customer could have fallen over some slightly uneven floorboards you’ve laid, or you might mistakenly spill coffee over their laptop. Whatever happens, public liability covers the costs.
As public liability is part of our standard insurance package, you’ll also be covered for product liability, legal expenses, financial loss, and accidental death. We offer this five-part automatic policy to all tradesmen, ensuring that their business will be financially protected against any unforeseen circumstances that could cost big bucks to straighten out.
When getting your free employer’s liability insurance quote, you might want to add some other covers for optimum protection. Tools and equipment insurance is often popular with tradesmen, as it allows you to keep working if any all-important gear is stolen or broken. Or, if illness or injury leaves you temporarily unable to do your job, income protection guarantees a regular income until you’re back on your feet again. Whatever industry you work in, Tradesman Saver can create the perfect, personalised insurance plan to keep your business up and running.
Online & Anywhere
We like to keep things simple. Your quote, purchase & documents are all available online, anytime.
No need to wait for your documents. You’re covered from the moment you purchase.
Public Liability, products liability, financial loss, legal expenses and accidental death cover as standard on every policy.
Cashflow is important to every business. Spread the cost & pay in easy, monthly instalments.
Employers Liability Insurance
Employer’s Liability Insurance: Frequently Asked Questions
Do I need employer’s liability cover for subcontractors?
As a contractor looking for employer’s liability insurance, your need for it depends on whether you hire bona-fide or labour-only subcontractors. A bona-fide subcontractor works independently of the company by setting their own hours and using their own equipment. They are also paid by invoice rather than salary.
Labour-only subcontractors, however, are treated like employees and work under a company’s supervision, using its equipment. Therefore, if you employ labour-only workers, you must take out employer’s liability insurance as they will count as members of staff.
You won’t need to do the same for bona-fide subcontractors, but you should ensure they have their own insurance in place, such as public liability and employer’s liability coverage for their own workforce.
Is employer’s liability insurance compulsory?
Employer’s liability cover is a legal requirement for the majority of British businesses with a minimum of one employee. An employee can be defined as someone who has income tax and National Insurance contributions deducted from their wages, and uses company tools and equipment to do their job. Without this cover, you could face a daily fine of £2,500 until you purchase a policy.
To check whether you’re legally obliged to hold employer’s liability insurance, examine the details of the relevant legislation.
What does employer’s liability insurance cover?
Here at Tradesman Saver, our employer’s liability coverage provides you with an indemnity limit of up to £10 million for a single claim. There’s also an option for you to extend this insurance to include working partners and temporary staff. This means if anybody in your team was injured, or fell ill at work, we’d pay up to £10 million of compensation and legal fees.
How much employer’s liability insurance do I need?
By law, UK employers need at least £5 million worth of cover. This is outlined in the Employer’s Liability (Compulsory Insurance) Act 1969. However, it’s important to consider how likely it is an employee could make a claim against you at some point in the future. For instance, if your nature of work is particularly high risk, the likelihood of potential injuries or illnesses may be more severe, and £5 million may not be enough to cover this risk. This is why we offer customers a £10 million indemnity limit in our employer’s liability insurance policies. Our helpful guide can help you gauge how much employer’s liability cover is most appropriate for you.
Will I get a certificate of employer’s liability?
As soon as you buy your policy with Tradesman Saver, a certificate of employer’s liability will be emailed to you with your other policy documents. You’re required to display this where your employees can see it, and have it readily available to show health and safety inspectors. You’ll be liable for a fine if you don’t do this.
Do I need to keep my employer’s liability insurance records?
You should always keep your paperwork to protect you against any health problems that arise in the future. For example, an employee of yours could be exposed to something that causes an illness, but the condition may not develop for many years. In situations like these, you’d need your insurance details for the period the exposure occurred.
Can an employer’s liability claim be made against me if I become bankrupt?
Employees who become injured or ill as a result of employer negligence can make an employer’s liability insurance claim against the business, even if it goes into liquidation.
Who needs employer’s liability insurance?
For anybody running a business and employing staff or using labour-only sub-contractors, this cover is legally required. There are, however, a few exceptions to employer’s liability insurance which are worth noting.
If your business is a limited company, with only one employee owning 50% or more of the issued share capital, you aren’t obliged to take out employer’s liability insurance. If your business isn’t a limited company, but either you’re the only employee or you only employ close family members, then this coverage is also not compulsory.
However, even though employer’s liability insurance isn’t a legal requirement in these circumstances, it may still be wise to purchase this optional policy to provide a safety net against unforeseen accidents at work.
Thanks a million. Great product.
Nice and easy to set up. Competitive rates. Hopefully I won’t need to claim but I hope it will go smoothly if needed.
Quick easy and by far the best prices