Employer’s Liability Insurance in Business

Employer’s Liability Insurance in Business

In the UK, employers are liable for their employees for a great deal of potential eventualities, ranging from stubbing their toe to catching deadly diseases. Those who employ workers are responsible for outcomes and the brunt of their professional safety during the course of their employment.

Employer's Liability Insurance in Business

The law enforces duties upon those with certain elements of power such as employers, making it their responsibility to ensure the welfare, health and overall safety of their employees and others within the workplace.

A breach of duty as it were, regarding the safety of those working for an employer would result in civil action or cases of liability being held against them resulting in severe financial loss.

As a result of this certain level of obligation put upon employers and those who have people working for their companies, insurance exists as a way in which one can remain financially covered should any misfortune or accident occur to an employee. This policy is called Employers Liability Insurance and is very common amongst businesses and companies across the professional sector here in the UK.

Concerning limited company contractors, most would not expect such insurance as Employers Liability to apply, those in the contracting profession commonly being individual one man bands and sole traders. Without the existence of an employee, why should such a policy be necessary?

The truth is that more and more limited company traders and contractors are opting to take on part time or full time staff working for their contracting businesses. This doesn’t necessarily mean that there is more than one member of a limited company’s staff contracting, but an employee could be hired to manage finances or sort accounts etc.

Whatever the case may be, by law the contractor must then purchase the employer’s liability insurance to show that they are protecting themselves financially, and also providing a means to meet potential liability costs.

Without sufficient employer’s insurance, many small businesses, namely limited company contractors, could become bankrupt or simply incur great sums of money to be paid as compensation to any employees who were victims of a lack of safety.

Employer’s liability insurance is an increasingly popular and essential form of cover to any limited company contractor who may take on staff, the policy often being a contractual obligation at the beginning of any work contracts, making it especially important.

Whether you are a business large or small, when it comes to taking on employees and staff, there comes with it great responsibility to look after and oversee health and safety within the workplace, whether they are taking a break or when performing professionally.

This duty that employers take on must be honoured, and employer’s liability insurance is a failsafe way in which policy holders can be safe in the knowledge that their assets are covered should they be on the receiving end of a liability claim. To gain complete peace of mind, employers are seriously advised to hold this policy especially as the law states that their duty of care requires it.

By Jade Scheffer

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