Employers Liability Insurance
Employers’ liability insurance covers the cost of compensating employees who are injured at or become ill through work.
The Employers Liability (Compulsory Insurance) Act 1969 requires all employers carrying on business in the UK to Insure against their legal liability for injury or disease caused to their employees in the course of their employment. The Act was further enhanced under the Employers Liability (Compulsory) Regulations 1998, insurance must be effected for any ‘relevant’ employee, which broadly means an employee who is ordinarily resident in the UK. To close potential gaps likely to arise in cover, employers liability insurers are precluded by the Act from relying on certain policy conditions or warranties in order to avoid providing indemnity.
The requirement by law, currently, is that employers need to carry a minimum of £5m limit of liability in respect of any claim. However Insurers usually give an automatic limit of liability of £10m any one claim. Employers can request higher limits of cover from their main insurer or purchase ‘top up’ cover via an Excess of Loss from other Insurance Companies. These higher limits should be considered when there is a higher exposure such as a concentration of employees at any one site.
Who does it cover?
Your policy should cover claims brought by:
- all permanent employees
- contract, casual and seasonal employees
- labour-only subcontractors
Your policy should also cover claims brought by:
- temporary staff, including students and people on work placement
- volunteers, advisers, referees and marshals
Certificates of Employers Liability must be either prominently displayed or contained on an intranet site where employees can easily view them. Certificates do not have to be stored for 40 years as they were previously. This is because insurers have now set up a centralised database (very much like the Motor Insurance Database), where employers details (employment reference number) are kept with the insurers details. This will make it easier to find out who the insurer was for any given year for companies who held Employers Liability Insurance. For more information about this type of insurance, or any other type of business insurance please do not hesitate to contact us.
Contact Woodward Markwell
Please call us on 01473 408408 or click above to email and we will respond to your enquiry as soon as possible.