The more employees you will have, the more expansive your insurance will be. That is why there is no global average price to be given. However, the here-below table give an idea on how much is employers' liability insurance depending on your company's size: Which companies are exempt from employers' liability insurance? In some particular cases, it happens that an exemption allows a business owner not to subscribe mandatorily an employers' liability insurance. You are exempted when you are: A limited company, when you employ only one person which owns more than 50% of the shares of the company's capital A not limited company with one only employee who has the status of sole trader Two or more directors with the status of equal partners in the business, and you do not have employees An organization within the public sector (such as a healthcare service or a governmental agency) – not all are exempted though A family company, within which the staff is composed of direct family members How much employers' liability insurance do I need?
All Employers Liability policies are required by law to carry a minimum limit of indemnity of £5m for any one claim. It is industry standard, however, for cover to be issued with a £10m limit – please note that work carried out offshore &/or with asbestos is an exception to this and is normally limited to £5m. Advice should be sought from Yutree to ascertain if higher indemnity limits are required or more appropriate. You are responsible for the health and safety of your employees while they are at work. Please note that the Health and Safety Executive (HSE) is the enforcement authority for Employers Liability insurance compliance. Your business may be fined up to £2, 500 for any day you trade without suitable insurance. Do I really need it? You must have Employers Liability if you have employees (see below) unless you are exempt under the Act. The following employers are exempt: most public organisations including government departments and agencies, local authorities, police authorities and nationalised industries; health service bodies, including National Health Service trusts, health authorities, primary care trusts and Scottish health boards; some other organisations which are financed through public funds, such as passenger transport executives and magistrates' courts committees What is the definition of an employee?
Do I need employers' liability insurance for volunteers? This question is mostly asked in the case of charities welcoming volunteers within their premises. It is recommended for any organization having volunteers working to subscribe an employers' liability insurance policy. In case a volunteer makes a claim after being injured or ill, this is the best guarantee to avoid a defense on the organization's own funds. What happens if I don't have employers' liability insurance in the UK? As said above, subscribing to an employers' liability insurance policy is a legal obligation in the UK. The government warns companies that 'you can be fined £2, 500 every day if you are not properly insured'. If an inspection is made into your company, you must be able to present to the government inspectors your employers' liability certificate (EL certificate). You'll be immediately fined £1, 000 if you are unable to present this document. How can I compare employers' liability insurance? The best way to find the deal most suited to your company's need at the best price is to use a business insurance comparator, such as the one we propose.
If the BFSC's insurance fails, you are required to provide contingent cover. If there is an accident and a BFSC is injured and their own Employers Liability cover fails, you could be responsible for a claim under your public liability section. You do not need to buy Employer's Liability insurance for BFSC. The safest way to consider this is that, if a master/servant relationship exists, then the sub-contractor is an employee. If it doesn't, they are a BFSC and therefore not classed as an employee under the Act. To help you to ascertain this, a servant must act under the command of a master. Can I buy Employers Liability cover on its own? Generally, no. Employers Liability cover is most often "bundled" with Public & Products Liability cover. Wages estimates for my insurer – why is it needed and what should I include? In order to assess the premium, insurers will normally require an estimate of the payments to all employees. Broadly the higher the wage roll, the greater the exposure to insurers.
On this particular point, the Health and Safety Executive (HSE) has expressed a clear position. If there is contractor working for your company, but also dedicating work to other companies on the same time, you are not to be held liable as employer if something occurs with that person. However, there can be exceptions depending on the situation, so it is better in that case to speak with your legal advisor. Do I need employers' liability insurance for my subcontractors? This is a tricky case. There might not be a precise answer to that question, for it depends a lot on the work relationship between the company and its subcontractor. When the subcontracted person dedicates itself only to your company, using the company's equipment, you might be considered liable for injury or illness that could affect him / her. In doubt, discuss it with your legal advisor. What is the difference between employers' and public liability insurances? The employers' liability insurance covers the risks of an injury or illness affecting the employees of a company within their work environment.
To check if your business is exempt from employers' liability insurance see the Health and Safety Executive (HSE) website. How much employers' liability cover do I need? You need at least £5 million of cover, although many insurers offer a minimum cover of £10 million. You are also required to display a certificate of the insurance where your employees can see it (printed or online). Who should my policy cover? Type of Employee Who should be covered Permanent There are a number of criteria that distinguish employees from other types of workers, two key ones being that: 1) they have income tax and National Insurance contributions deducted from their salary 2) their location, conditions and hours are controlled by you, the employer. Short-term These include contract, seasonal and casual employees. Labour-only subcontractors These are sub-contractors who do not provide their own materials and tools normally, and who work under your direction. Don't confuse these with bona-fide subcontractors who will usually work under their own direction, use their own tools and materials and crucially have their own insurance.