All UK based employers are required by law to have insurance to cover the cost of any compensation if their employees are injured at work or become ill due to contracting a disease. This insurance covers the employee by protecting him or her from expensive medical bills and loss of earnings if they are off work, as well as providing for their family if necessary. The employer is also covered, because if one of their employees has an accident at work they will be required to pay compensation or possibly become embroiled in a legal battle, which will cost lots of time and money and may even bankrupt a small company. If you have an accident at work and are unsure of the level of cover that you are entitled to then contact Accident Advice Helpline who will be able to help and advise you; we have extensive experience in dealing with claims for compensation and will help to ensure that your claim is dealt with quickly and efficiently.
What is covered?
The insurance covers any accident or illness that you suffer whilst you are working. The law states that the insurance policy must not have clauses that allow the insurers to refuse to pay out under certain circumstances, so if you are checking your company’s liability insurance policy keep an eye out for any of the following exemptions, as they are not permitted.
- The insurer cannot refuse to pay out if they believe that the employer has not followed legal requirements for health and safety in the workplace
- The claim must be paid out, even if the employer has done something, such as admit liability that the insurance company has told them not to. It must also be paid out even if the employer has failed to do something that the insurance company has asked them to do, such as keep proper records.
- The insurance company must pay out even if it believes the employer has not made reasonable attempts to keep the employees safe from injury or disease in the workplace.
These clauses are not allowed, in order to avoid lengthy legal battles; however, though the insurance company has to pay out even if you or your employer have not made reasonable efforts to work in a safe manner, it may sue the employee or employer to recover the cost of the claim. For this reason, as well as the obvious one of not wanting to be injured, it is important that you follow all of the health and safety legislation relating to your industry.
Exemptions and inclusions
All companies, however small, must have employer’s liability insurance if they have employees. This does not apply for employees who are related to the employer, such as siblings, spouses, parents and any half or step relatives. Only UK based companies are required to have this insurance and it need only cover employees who are working in the UK. The insurance must provide a minimum of five million pounds cover and the certificate should be available for inspection by employees or any official who is carrying out an inspection of the company’s premises. In many cases the certificate must be displayed in the workplace for the information of the employees working there.
You can claim for compensation for an injury or for contracting a disease, whatever size your company is, as this insurance is compulsory for all UK companies with employees.
Date Published: October 17, 2013
Author: David Brown