If you run your own business then it’s likely that you’re also an employer. If so you have legal responsibilities to your staff and one of those is to have Employers Liability Insurance.
The Employer’s Liability Act makes it compulsory by law for all employers to have employers’ liability insurance as they are responsible for the health and safety of employees while they are at work.
You can find a full guide to the Act and to how it applies to you here .
Employers’ liability insurance helps you to pay compensation if an employee gets injured or ill as a result of the work they do for you.
Legally you must have at least £5m of Employers’ Liability insurance but NatWest offers £10m as standard, make sure you check you’re getting the amount of cover you need when looking at your insurance requirements.
You need employers’ liability cover because it’s a legal requirement but beyond that it’s essential to help your business cope with the consequences of an accident or mistake. Legal costs and compensation payments can run into thousands of pounds - it’s your liability insurance that helps your business weather the storm.
It’s also important to be aware of the two different types of liability insurance; public and employers’ liability insurance. While employers liability insurance is a legal obligation public liability is not. But if a customer or member of the public gets injured due to the actions of your business you will need public liability insurance to cover any compensation claims and legal costs. Find more information about NatWest public liability insurance here .
So, public and employer’s liability insurance is essentially about your peace of mind. When you contact NatWest for an employer’s liability quote we will discuss the level of cover you need to make sure you get the right policy for your business. There are also a few exceptions when you are not legally obliged to get employers’ liability insurance. You may not need it if:
When you look at taking out a policy, you should take into account:
There is no one-size-fits-all when it comes to calculating your employer’s liability insurance quote. Our specialists will want to find out about the nature of your business before the cost of your insurance can be worked out.
But it’s important to act quickly - if you think you need employers’ liability insurance then you need to get covered as soon as possible. You can be fined for every day you are not properly insured.
Once you have your insurance arranged, you will be provided with a certificate for you to display so that all employees are able to read it. You will also need to make this certificate available to Health and Safety Executive inspectors should they ask you for it. Keep hold of all of your past certificates too. You are legally required to retain the document up to 40 years of past insurance.
At NatWest we have a dedicated team of UK based business insurance advisors to help you get the employers’ liability insurance quote that is right for you.