Do I Need Employers Insurance?
Most employers need employers insurance, normally called Employer’s Liability insurance.
In the UK it is, with a few exceptions, compulsory to have employers insurance if you employ anyone. You are responsible for the health and safety of your employees whilst they are at work and the insurance is meant to cover you if one of them has an accident, or a former employee becomes ill because of something involving their employment within your business.
How do I Know if I’m Exempt?
You do not need employers insurance if your employees are based abroad, and in the course of their work spend no more than 14 days continuously in the UK.
The other main exemptions are:
- Government departments and agencies, local authorities, the police and nationalised industries.
- Health service organisations including NHS trusts, health authorities, primary care trusts and Scottish health boards.
- Some organisations that are financed by public funds such as passenger transport executives and magistrates.
- Family businesses, that are not limited companies, where all the employees are close family members including spouse, grandparents, children, grandchildren, brothers and sisters.
- Companies with only their owner in employment where that person owns more than half of the issued share capital in that company.
Do I need to have Employers Insurance cover for all my employees?
If there is any form of contract between you, whether written, spoken or implied, then they will come within the scope of your policy and when informing the insurance company how many employees you have, should be included. Their tax status, as employed or self-employed, is a totally different matter and what really matters is the amount of control you have over the work they do for you.
What happens if I do not have the necessary insurance?
The fines for not complying are horrendous. The Health and Safety Executive, who if they call at your premises would expect to see your certificate of insurance on display, monitor this.
Dealing with the Insurance Company
We all know how difficult it can be dealing with the insurance company, especially when the claim is against you as the employer. At the end of the day, if an employee has a genuine claim against you and you have all your insurance in place, they should be able to have a hassle free claim with the insurance company.
At Accident Advice Helpline we are used to dealing with insurance companies, we know what they expect from a claim and we know how to handle them. Your employee should contact us on our freephone number, 0800 689 0500 or from your mobile on 0333 500 0993 and speak to one of our friendly advisors. Or they could complete the 30-second test on our website for guidance as to the amount they may receive.
Either way, Accident Advice Helpline will be the best choice for you and your employee.
Date Published: 22nd July 2013
Category: Health and safety at work