Employers Liability Insurance

Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment.

They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.

Employers’ liability cover from Sagar Insurances will enable you to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site.

However, any injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.

What you need to know about Employers Liability:

An EL policy indemnifies the insured in respect of their legal liability to pay damages if they are the result of negligence.

Whether or not you need employers’ liability insurance for someone who works for you depends on the terms of your contract with them. This contract can be spoken, written or implied. It does not matter whether you usually call someone an employee or self-employed or what their tax status is.

Whether you choose to call your contract a contract of employment or a contract for services is largely irrelevant. What matters is the real nature of your relationship with the people who work for you and the nature and degree of control that you have over the work they do.

You are only required by law to have employers’ liability insurance for people who you employ under a contract of service or apprenticeship.

You must be insured for at least £5 million although in practice, most insurers offer cover of at least £10 million.

Why do I need Employer’s Liability Insurance?

• Employers Liability insurance is there to protect your company and your employees. It is also the only major form of liability insurance that is compulsory in the UK.
• If any of your employees are normally based in England, Scotland or Wales (including offshore installations or associated structures) you must have employers’ liability insurance.
• Since February 2001 all EL insurers must make arrangements to publish the required information in a publicly accessible register or through an authorised tracing office.
• If you are negligent then then you can be liable at any time to pay damages, costs and expenses to someone who suffers injury or loss.