What is employers' liability insurance?

Employers’ liability insurance is designed to protect your business against the cost of compensation claims arising from employee illness or injury, which may of occurred whilst working for you.

It is a statutory legal requirement in the UK if your business employs one or more people, each day. Without Employers Liability insurance your company may be fined up to £2,500 per day.

Do I need employers' liability insurance?

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. However under current law in the UK you do not need employers’ liability insurance to cover any of your employees who are based abroad.

It is advisable to check whether the law in the country where they are based requires you to take out insurance or take any other measures to protect your employees.

If any employees normally based abroad, spends more than 14 consecutive days in Great Britain, or more than seven days on an offshore installation, you will need Employers’ Liability Insurance for them under current laws in Great Britain.

What happens if I don't have employers' liability insurance?

The law on Employers Liability Insurance is enforced by, ‘The Health and Safety Executive’ (HSE). HSE inspectors can check that you have employers’ liability insurance with an approved insurer for at least £5 million. They may ask to see your certificate of insurance and other insurance details. You can be fined up to £2500 for each and every day you are without this statutory insurance.

You can also be fined up to £1000 if you do not display the Certificate of Insurance or refuse to make it available to HSE inspectors when they ask.

Cover information

Limit of indemnity £10,000,000 any one occurrence unlimited in the period of insurance but subject to the following sub-limits:

• £5,000,000 any one occurrence and in the aggregate in the period of insurance in respect of terrorism
• £5,000,000 any one occurrence and in the aggregate in the period of insurance in respect of unwitting exposure to asbestos
• Limit of liability is inclusive of legal costs and expenses

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Need more help? Call us on +44(0)20 7889 2900 or contact us via email at qoutes@hattonandberkeley.com