What does employers’ liability insurance do?

This policy typically provides financial protection in the event that an employee makes a claim against you for an injury or illness sustained while going about their day to day business or on your premises.

If you run a business, you may think that nothing will ever go wrong – for example, you will never be sued or accused of negligence. However, some things are beyond our control and things can, and do, go wrong. And in today’s society, where suing people is the norm, your livelihood could be at risk if an employee decides to make a claim against you for something unexpected.

Professional indemnity insurance can help your business to overcome unexpected hurdles and minimise any financial loss – as well as the undoubted stress you will personally face – in the event of a claim against it.

If you were faced with a business claim against you or your company, [KEYWORD] could step in and provide a number of benefits, such as assistance with legal costs and claims for damages. This would keep your business running where it otherwise may fail.

So, where do you go if you want to buy employers’ liability insurance cover? Specialist providers of liability products may be an option – they will often have unlimited expertise in the sector, as well as a choice of policies, enabling them to provide cover that is suitable for your needs.

Do note that as with all things financial and legal, policy terms and conditions do vary among the different providers. Check the small print to confirm the amount of employers’ liability cover you have; any excesses; and how long a policy must be in force for before you can claim.

Employers’ liability insurance is not just a legal requirement – it provides a financial safety net should your business be the subject of a claim against it, so never under estimate its importance.

By law, therefore, the required employers’ liability insurance must provide a minimum of £5 million cover and, in practice, most such insurance policies provide at least £10 million. This is designed to provide protection – for both the business and the employee – for even the most serious incidents involving the death or injury of an employee at work or compensation for an illness or medical condition contracted through that work. Such claims might include the provision for long-term medical care, for example, and even where treatment is provided by the National Health Service, these costs can be reclaimed from the liable business by the health service.

The official Health and Safety Executive carries out the duty of law enforcement with respect to employers’ liability insurance and is responsible for the prosecution of cases where the relevant insurance has not been obtained. Fines of up to £2,500 a day can be imposed on employers who have failed to arrange the appropriate insurance and fines of up to £1,000 can be imposed on those businesses that fail to display the relevant insurance certificate or to produce one at the request of visiting Health and Safety Executive inspectors.

It is in the nature of such risks, of course, that claims can arise many years after the employee’s or former employee’s exposure to the work alleged to have caused a medical condition or illness. It is prudent, therefore, to ensure that full details of any employers’ liability insurance are kept for a long period of time. Any claims will be based on the period of time which it is alleged that the employee was exposed to the working conditions that gave rise to the illness and unless the employer can call on adequate employers’ liability insurance, then any claims for which the business was liable will need to be met by the business itself.