What does employers liability cover?

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contractors on site

Employers’ liability insurance provides businesses with protection from accident and injury claims made by current or past employees. If you have employees or volunteers working for you, you are legally obliged to purchase employers liability insurance.

This type of cover not only protects your employees, it protects your business. It could cover the costs incurred from claims made by an employee who has suffered a work related illness, injury and even damage to property as a direct result of your business operations.

Here are some hypothetical scenarios that could result in claim, which policy depending, may be covered by an employers’ liability insurance policy:

  • A roofing company is carrying out work on a roof and an employee slips off the roof. The employee could make a claim against his employers for failing to provide safety barriers.
  • A bartender slips due to a leaking barrel in the cellar of a pub and is unable to work for a number of months; he/she could make a claim against their employer for sub par health and safety standards and loss of earnings.
  • An employee at a manufacturing company severely injures their arm when he/she reached in to unblock a machine. The employee could pursue a claim against their employer for failing to provide efficient training and correct guarding.
  • An apprentice was injured on a construction site when a hammer fell onto his head. A claim could be made for failing to supply the apprentice with appropriate safety equipment.
  • An office worker falls down a flight of stairs after they trip on a raised bit of carpet. The employee could claim for compensation on the basis that the business failed to comply with health and safety regulations.
  • A builder suffers an illness as a result of refurbishing a building that contained asbestos which was discovered several years after the job was carried out. The builder could claim against the employer for failing to identify if there was asbestos present or for failing to handle it correctly.

“Do I have to have it?”

If you employ people to work for or on behalf of your business whereby the following applies:

  • You have people under a contract of service.
  • You deduct National Insurance contributions and income tax from the salary you pay someone.
  • You control when, where and how people work.
  • You have people ‘helping’ – working free of charge or apprentices.
  • You supply the work materials and equipment.

…then you are legally obliged to take out employers liability insurance under the Employers Liability Insurance Act (1969).

Amount of cover:

You legally are required to purchase a minimum of £5 million employers’ liability insurance cover (although most insurers will provide £10 million as standard).

More Information and Quotes

This guide is part of our series on employers liability insurance, for product information, links to more guides or to get a quote, visit our employers liability section here. You can also call our UK based sales team on 08081686868.

Read about ELTO here: Employers Liability Tracing Office – What is it?

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