Employers Liability Insurance |
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A brief overview of employers liability insurance in the United Kingdom.
The short answer is, any person or company that employs people within the business. There are limited exceptions to the legal requirement and these include certain close family members and where a company employs only one director who is also the single shareholder.
It is worth noting that although certain farmer numbers may be excluded from the requirement, it is still highly advisable to take out employer's liability insurance in order to protect their interests in the future.
The legal requirement for Employers Liability Insurance originally came into force as a result of the Employers Liability (Compulsory Insurance) Act 1969. The current legal requirement is for a minimum limit of indemnity of £5 million. In the United Kingdom, the minimum limit generally available from insurers is £10 million. Higher levels are sometimes required, and additional limits can be provided by topping up the cover.
The answer to this question is the same as all the classes of insurance. It very much depends upon what is at risk - in this case, what activities is the employee engaged in, how dangerous those activities and what is the likely maximum value of any claim.
The traditional method for calculating employer's liability insurance premiums, has been to base the premiums upon the annual wageroll. More recently, increasing numbers insurance companies offer terms on a per capita basis i.e. charging per employee. Whilst this is commonplace. For many occupations, more hazardous occupations continue to rated in the traditional manner.
Employers Liability Insurance protects the policyholder in respect of their legal liabilities for injuries, illness or diseases sustained by employees, arising out of the course of their employment. In addition to any legal awards, one of the key benefits of the cover is the inclusion of legal costs incurred defending a claim, whether the claim be genuine or otherwise.
It is extremely unusual for an employer's liability insurance policy to be issued on a stand-alone basis. It is generally bought in tandem with a public liability insurance policy, all under combined insurance policy such as commercial combined, shop insurance or office insurance.
The answer to this question is generally "no"! An insurance company in underwriting a risk will assume that a policyholder has discharged fully their responsibilities under the Health and Safety at Work Act. insurers consider sound risk management to be very important, but practically speaking discounts will not be available other than in the case of larger and more complex risks.
If you require expert advice on Health and Safety at Work, we can put you in touch with specialists in this field..