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What is employers liability insurance?
Employers Liability Insurance offers cover for claims brought against an employer by their own employee. These claims can be relating to an employee suffering an injury whilst working, an illness caused by their job, and even accidental death that occurs when they are working.
Employers Liability Insurance is a mandatory requirement under UK law if a business has employees*, and has been since the introduction of the Employers Liability Act 1969.
This insurance was created to provide employers with cover if they are held liable by any of their employees relating to bodily harm, but also to ensure that employees who deserve compensation can get an adequate payout.
Here at Rhino Trade Insurance, we offer £10 million of cover to help protect your business should a claim be made against you by a current, or former, employee.
- Our prices start at just £6.07 a month
- This cover is legally required under UK law (more information can be found below)
- Cover your business up to £10 million
*in most cases barring specific exceptions. More details found here.
What does employers liability insurance cover?
Employers Liability Insurance covers an employer for the costs associated with a claim being made against them by an employee. These costs include legal fees, or compensation for bodily damages.
It can also protect temporary employees, such as apprentices, sub-contractors and casual workers. Employers' Liability Insurance will also cover the death of an employee whilst performing duties for your business.
It's a legal requirement in most cases where you have employees, and the penalties can be severe for not having the right cover. You can be fined up to £2,500 for each day that you are without suitable insurance, and you can face a £1,000 fine on the spot if you fail to display your certificate of insurance or refuse to make it available to HSE inspectors when they ask.
What could a claim look like?
An employee at your plumbing firm breaks their hand whilst using tools you supplied, and they accuse you of not maintaining the tools correctly. As an employer, you have a responsibility to look after those working for you, so you could be on the hook to pay compensation. Employers Liability Insurance would cover any legal fees relating to this incident and would cover the compensation that the employee might be owed.
One of the builders who you have hired to help out on site trips over a misplaced floorboard and injures themselves. Again, it is your responsibility to maintain a safe work environment, so Employers Liability Insurance would cover you if the subcontractor brings a claim against you relating to this incident.
How much does employers liability insurance cost?
Rhino Trade Insurance offers Employers Liability Insurance specifically for tradespeople and we understand the unique risks of hands-on jobs, like building, plumbing, and electrical work, that could lead to a claim being made under this policy.
With prices starting from just £6.07 a month, we've got your back, covering compensation payouts and legal expenses, so you can keep doing what you do best without worrying about legal cases draining your bank account. With Rhino Trade Insurance, our affordable and comprehensive cover ensures you stay focused on your work while we handle the rest.
Like Public Liability Insurance, the price of Employers Liability Insurance does depend on several factors, such as the trades that are being undertaken (and the risks associated), and the number of workers in the business, Our cover starts from just £6.07 per month for £10 million of cover, and ensures that you are covered comprehensively, so you can focus on your work while we handle the rest.
Rhino's Take: 31,000+ quotes given. 80+ trades covered. 3,500+ five-star reviews. Hundreds of trade blog posts written and thousands of followers on Instagram. When you take out cover with Rhino Trade Insurance, you don't just get a policy - you join a lively community that helps to form lasting relationships not just with us but with other tradespeople. See what we can do for you today.
Why DO I NEED EMPLOYERS’ LIABILITY INSURANCE?
If you employ people in your business, whether they are permanent members of staff, part-time workers, or temporary labourers, you are legally required to hold an Employers Liability Insurance policy.
Your policy must have a limit of indemnity of £5M as a minimum, and it must be purchased from a fully authorised insurance company.
Not having this policy can result in your business facing large fines, or even worse, not being able to cover the cost of a claim made against you.
With Rhino Trade Insurance, cover starts at just £72.80 a year with a limit of £10 million, making it affordable for trade businesses of all sizes.
Here's why you need Employers Liability Insurance from Rhino Trade Insurance:
- Accident and Illness Protection: Covers claims from your employees for workplace accidents and job-related illnesses.
- Cover for Legal Fees and Compensation: Keeps your business finances safe by covering legal defence costs and compensation payments relating to a claim.
- Available with Valuable Add-Ons: Option to add further trade insurance products like Tools in Transit Cover or Personal Accident Insurance.
It’s important to remember that some customers won’t work with a tradesperson or contractor if they do not hold Employers Liability Insurance. So even if it’s not a legal requirement, it could be a condition of your contract.
EMPLOYERS LIABILITY INSURANCE FOR CONTRACTORS
- Cover for £10M, meeting any legal or contractual requirement
- Optional cover for multiple trades/business activities
- Option to purchase Tools in Transit Cover and other great value add-ons
- Instant cover with documents available immediately
- Monthly or annual payment options
- Dedicated UK telephone support
Where can I get Employers Liability Insurance?
Rhino Trade Insurance offers Employers Liability Insurance as an add-on to our Public Liability Insurance which protects tradespeople for damages to third party properties caused by their business activities, or if they cause injury to members of the public.
Rhino’s Public Liability and Employers Liability Insurance quotes can be tailored to your specific business needs. Like everything at Rhino, we like to keep everything as simple and as straightforward as possible – insurance can be complicated after all – and getting a quote for your business is no different. Simply visit our quote engine, let us know about you and your business, and from there you can select the products that’ll best protect you. And it’s no problem if you don’t fancy getting your quote sorted online, just give us a call to discuss your quote with our dedicated team of trade insurance experts.
What does Employers Liability Insurance do?
There are costs associated when an employee has an accident whilst at work or becomes ill as a result of their job. These costs are generally made up of damages and compensation fees to be paid to the injured party, as well as things like legal fees associated with settling the issue.
As the employer, it is your responsibility to maintain a safe working environment for all your employees, so the liability would fall to you. Compensation for injury or illness claims can run into the thousands of pounds, as can the legal fees associated with defending your business from allegations. Having Employers Liability Insurance in place offers cover in this eventuality, offering you peace of mind to operate your business successfully.
What happens if I don’t have Employers Liability Insurance?
Not having Employers Liability Insurance in place can be incredibly costly for your business. You can be hit with fines of £2,500 per day if you go without Employers Liability Insurance.
You also need to make sure your certificate is readily available to view, too. Failure to present your certificate when asked by inspectors will result in a £1000 fine on the spot.
Remember, it is a legal requirement for you to hold Employers Liability Insurance if you employ people, whether they are full-time, part-time, or temporary members of staff.
Under the Employers Liability Act 1969, “employees” are defined as:
- Full-time staff
- Part-time staff
- Labour-only subcontractors – these are subcontractors that work under your direction and do not hold their own liability cover
- Temporary staff
- Apprentices
- Work experience students
There are exceptions to the rule, and some employers are exempt from needing this insurance. You won’t usually need Employers Liability Insurance if:
- You’re a sole trader business and you only employ close family members, e.g. parents, siblings, children or stepchildren
- You’re the director of your own company and the sole employee
You only employ bona-fide subcontractors (subcontractors who work independently and have their own liability cover in place) – HMRC could ask you to prove that these subcontractors are not an “employee in disguise”, and you must ensure they have their own cover in place.
Do I need to tell my employees about this insurance?
Yes, your employees should know they’re covered under your Employers Liability Policy.
You should display your certificate in full view on your business premises or have it to hand whenever requested. A good option if you do not have a set office space might be to keep a copy of your documentation in your work vehicle, so it is ready to go if needed. Your policy documents are also available at any time through your account page.
You can be fined £2,500 for every day you’re not insured and suffer a £1000 fine if you don’t produce your policy certificate when requested by Health & Safety Executive inspectors.
Do you need Employers Liability Insurance for a limited company?
If you have a limited company which has any employees, then it is a legal requirement for you to have Employers Liability Insurance.
However, if you’re the sole-director of a limited company that employs only yourself, then you don’t need Employers Liability Insurance.
Still not sure if you need Employers Liability Insurance?
If you are still unsure of your legal obligation to carry Employers Liability Insurance, the HSE provides some more in-depth guidance here. Alternatively, contact the friendly trade insurance experts at Rhino to have a chat about your unique circumstances.
POTENTIAL CLAIMS
Below are some examples of potential claims that would be covered under an Employers Liability Insurance policy:
- An employee for a carpentry firm has been asked to use a tool that they haven’t been trained on and injure themselves. The employee makes a successful claim against the employer, which Employer’s Liability Insurance covers.
- An apprentice slips on a wet floor and hurts their back on a job site. Their employer’s Employers Liability Insurance covers their missed wages while they’re recovering.
- A group of employees contract E.coli from a filthy work fridge. They make claims against the employer for damages and loss of earnings, which their insurance policy covers.
Policy Docs
Useful Links
Employers Liability Insurance FAQs
Employers Liability Insurance protects an employer if an employee makes a claim against the business in the event of suffering injury or illness due to their work. This type of insurance is important for any business to protect both employee’s welfare and your own livelihood as a business owner.
Employers Liability Insurance will cover your business if your employee makes a claim against you if they are injured or become ill due to their work, and that you are found liable for, up to the indemnity limit of £10M.
Employers Liability Insurance covers an employer in the event of an employee making a claim against them for injury or illness as a result of negligence in the workplace. In such cases, the employer could be found liable for costs relating to damages, which can lead to legal fees and compensation being owed - in these instances, Employers Liability Insurance would cover these costs up to £10 million.
Employers Liability Insurance covers an employer in the event of an employee making a claim against them for injury or illness as a result of negligence in the workplace. In such cases, the employer could be found liable for costs relating to damages, which can lead to legal fees and compensation being owed - in these instances, Employers Liability Insurance would cover these costs up to £10 million.
If you have any employees, whether they are full-time, part time, or temporary, it is likely you will be legally required to hold Employer’s Liability Insurance. There are some exemptions, such as running a business that is not incorporated, and you only employ close family members. If you are unsure of your legal obligations to carry Employers Liability Insurance, the HSE provide some guidance here.
Employer’s Liability Insurance is important because it offers protection to an employer should the face a claim made against them by their own employee relating to injury or illness caused by their work. It also ensures the employee receives a fair payout in the event that something happens, so both parties are protected.
Without it, an employer would have to pay out of their own pockets whenever an employee made a claim. Not all businesses would be able to come up with the sum required to put things right, which would leave the employee in a bad position, as well as pushing the business towards potential financial trouble, including bankruptcy.
Without it, an employer would have to pay out of their own pockets whenever an employee made a claim. Not all businesses would be able to come up with the sum required to put things right, which would leave the employee in a bad position, as well as pushing the business towards potential financial trouble, including bankruptcy.
It is required from the same day you become an employer, as you have a legal responsibility to hold this insurance. You can face large fines from the HSE if you are found to be in breach of your Employers Liability Insurance requirements - £1000 on the spot if you cannot produce your policy certificate, and £2500 per day that you go without the necessary cover.
Rhino’s Employers Liability Insurance starts from just £6.07 per month, so there really is no excuse not to have it in place.
Rhino’s Employers Liability Insurance starts from just £6.07 per month, so there really is no excuse not to have it in place.
Working in the trades can be dangerous for employees, and as an employer, you have a responsibility to keep them as safe as you can. A slip, a trip, a fall from height, inhaling nasty chemicals, or even being injured by a co-worker could lead to an employee making a claim against your business.
If you are found liable for an employee’s injury, illness or accidental death due to negligence on your business' behalf, you would be responsible for covering the costs, which have the potential to run into the thousands of pounds in legal fees or compensation.
Employers Liability Insurance provides protection in such instances and will cover the associated costs up to £10 million.
If you are found liable for an employee’s injury, illness or accidental death due to negligence on your business' behalf, you would be responsible for covering the costs, which have the potential to run into the thousands of pounds in legal fees or compensation.
Employers Liability Insurance provides protection in such instances and will cover the associated costs up to £10 million.
By law, businesses in the UK are required to have cover of at least £5 million. However, an employer may be required to carry a higher limit depending on the work they undertake, or specific contractual requirements they might need to fulfil.
Having this cover in place provides reassurance and peace of mind, as the cost of defending your business against a claim from an employee could be extremely damaging to your business, especially for those who are just starting out.
Rhino offer £10 million cover as standard, so you can be sure your business is covered comprehensively.
Having this cover in place provides reassurance and peace of mind, as the cost of defending your business against a claim from an employee could be extremely damaging to your business, especially for those who are just starting out.
Rhino offer £10 million cover as standard, so you can be sure your business is covered comprehensively.
Employer’s Liability Insurance covers you against claims made by your employees, whether they are permanent, part-time or temporary, should they become injured or ill due to work carried out whilst working for your business.
Public Liability Insurance protects your business in the event you cause accidental damage to third party property, or cause injury to a member of the public.
Both policies offer vital cover to business owners, and Rhino offers these policies from £6.07 per month each. Just input some basic information into our online quote engine and get a tailored quote in minutes.
Public Liability Insurance protects your business in the event you cause accidental damage to third party property, or cause injury to a member of the public.
Both policies offer vital cover to business owners, and Rhino offers these policies from £6.07 per month each. Just input some basic information into our online quote engine and get a tailored quote in minutes.
You can get Employers Liability Insurance in place through Rhino! We offer this policy alongside our Public Liability Insurance, offering £10M cover as standard.
Input some basic information into our online quote engine to get a quote tailored to your business’s needs in minutes. Alternatively, pick up the phone and give us a call on 0116 243 7904 to speak to a member of the team about taking our cover with us.
Input some basic information into our online quote engine to get a quote tailored to your business’s needs in minutes. Alternatively, pick up the phone and give us a call on 0116 243 7904 to speak to a member of the team about taking our cover with us.
