Compare employers’ liability quotes

Having the right business insurance policies in place is essential to help protect your business against the many risks it faces.

And while all businesses are different and face varying degrees of risk, there are some types of cover that are essential, and sometimes mandatory - such as employers' liability insurance.

What is employers’ liability insurance?

Employers’ liability insurance protects your business if an employee is injured, falls ill, or even dies while at work or in the workplace. It covers the costs of any compensation claims, legal fees or medical bills if your business is found to have caused the problem.

You also need to be aware that ex-employees can claim against your business long after they’ve left, for example, cases of retrospective mesothelioma claims relating to exposure to asbestos.

And employers’ liability insurance only covers your employees and not members of the public - this is covered by public liability insurance.

Do you need employers’ liability insurance?

Although there are certain exceptions, the vast majority of businesses with one or more employees is legally required to take out employers’ liability insurance. But because every workplace is different, an employers’ liability policy needs to cover against all sorts of incidents in all sorts of industries. 

Here are some examples of when a business might need to make a claim on their employers’ liability insurance:

You run a cafe business

If you run a cafe and someone you've hired to help in the kitchen slips, falls and injures themselves while carrying some plates. 

In this instance, unsafe working conditions in your kitchen could be blamed for causing the accident, and you may have to pay compensation as a result. There’s a chance that you could also be ordered to pay for all legal fees related to the claim, including the fees incurred for the employee's legal team.

You’re an electrician

If you’re a spark with a young apprentice working for you, and they fail to carry out necessary safety precautions and suffers burns from an electric shock as a result. 

The accident could be deemed to be your fault, for instance, if the apprentice decides to blame you by stating that you did not provide proper health and safety training. In this situation, you could be responsible for compensating the apprentice for the injury, as well as loss of earnings due to time they have had to take off work.

In both of these examples, the money that you need to pay could reach tens of thousands of pounds – which could easily put many SMEs out of business. These costs would be covered as part of an employers’ liability policy, so the cover can literally be the difference between your business carrying on or going bust.

Is employers’ liability insurance a legal requirement in the UK?

Although there are exceptions, employers' liability insurance is a legal requirement for most UK businesses with at least one employee. You’ll need to take at least £5 million worth of cover, and the penalty for not having adequate insurance in place is a £2,500 fine for each day you go without cover. 

It's worth noting that employers' liability insurance might be included as part of an overall business insurance package, such as workshop insurance, which could also include public liability insurance and stock insurance, to cover against a range of risks.

To get all the cover your business needs, with no unnecessary extras, give the tech-enabled team at Bionic a call.

Are any businesses exempt from taking out employers’ liability insurance?

Although employers' liability insurance is compulsory there are a few exceptions, including:

  • Businesses that only employ close family members (unless your family business is incorporated as a limited company, in which case the insurance is compulsory).
  • Sole traders - providing you aren't incorporated into a business.
  • The majority of public organisations, including government departments and nationalised industries.
  • Health service bodies such as primary care trusts.

But, if you employ staff and none of the above exceptions apply to you then it's safe to say you'll need to take out this type of insurance.

How to compare employers’ liability insurance

The simplest way to make sure your business is covered against the unexpected is to speak to the team at Bionic - we talk your language and won't waste your time, working with you to just find the right policies you need, with no unnecessary extras.

Protect your business now - give our tech-enabled team a call and we’ll compare quotes from the UK’s most trusted insurers and adapt your insurance to suit the needs of your business.