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Glasgow
+44 (0)141 221 2984

Edinburgh
+44 (0)131 225 6366

Stirling
+44 (0)1786 451745

Dumbarton
+44 (0)1389 765238

Hamilton
+44 (0)1698 459444

French Duncan

Employers liability insurance: compulsory not voluntary

31 August 2015

If any of your employees are injured or develop an illness as a result of employment or employers negligence, then your ELI will cover any compensation and legal fees you incur. You might be surprised to learn that seemingly small accidents at work can result in an employee’s claim and employers’ liability insurance will help you pay the compensation.

If you don’t have this insurance in place, then you can expect to be fined up to £2,500 for every day you are not properly insured. But it doesn’t stop there: you can also be fined £1,000 if you do not display your employers’ liability insurance certificate or refuse to make it available to inspectors when they ask to see it. So it’s really not worth taking the risk and neglecting your duties.

Your policy must cover you for at least £5 million and be provided by an authorised insurer. The Financial Conduct Authority register provides details of authorised insurers and an insurance broker could also help you.

However, just having this insurance in place is not enough. You remain responsible for the safety and well-being of your staff while they are at the workplace, so make sure you have a coherent health and safety policy in place. Doing so should dramatically reduce the risk of accidents at work and hopefully you won’t need to make a claim.