What is employers liability insurance?

Why do I need it?

Hi, welcome to the 52 top tips for employers. They can be found on our top tip cards. And today we’re talking about the five of hearts, which is employee relations and employer’s liability insurance. 

Employer’s liability insurance is required for full-time and part-time staff, as well as for contractors. Employers must ensure that they have adequate insurance in the event of an accident or an incident involving an employee or a worker. Other insurances, which you may look at considering for your business depend on the nature of your business. These might include professional indemnity insurance, public liability insurance, and cyber insurance. 

When clients first come to us, when they’re first setting up their business, and they ask what they need from day one, the answer is really simple:

  1. They need contracts of employment for their staff. 
  2. They need payroll for their staff
  3. They need employer’s liability insurance.

And those are the three key things that are needed from day one. If you haven’t got a good insurance broker, find one. If you want a referral, call me. 

Having your employer’s liability insurance in place is really, really important. What’s also really worth checking is whether or not you’ve got legal cover. So a lot of business insurances will provide you with legal cover in the event of an employee making a claim against the business. 

Now that might be on your directors and officers insurance, or it could be on your employer’s liability insurance. But when you’re talking to your broker, make sure that you are taking out a policy that should you have an employment tribunal claim against you. The insurance policy will provide cover for you. And it’s fairly standard in most organisations that you can get this cover. It’s called usually called legal services cover, but check it out when you take out your employer’s liability insurance.

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