photo credit: baileyg100
For some things, at least, in the UK, we can be grateful – and that is that Employers Liability Insurance is compulsory. In other parts of the world, it is encouraged, but not mandatory.
If you are a sole-trader, you do not need this cover; however the moment you employ someone who you are paying to help you carry out a service, then you must take out a policy of this nature.
It is not something to be looked upon as an expense, rather documentation ensuring that you are covered by your insurer should anyone under your employment be injured, fatally or otherwise, or contract disease through your place of work; they will meet the costs, making it a safeguard for both the employer and employee.
And those costs can mount up – if you are found not to have this cover and an employee, ex- or current, brings a claim against you, as well as having to pay any due compensation, you can be fined up to £2,500 per day whilst the matter is awaiting resolution.
As of 2008, with the ruling that the displaying of a company’s current Employer Liability Insure document need only be digital (so far as in that all employees know where, and have access to, that document), it has been ruled that prior copies of a company’s insurance need no longer be kept, legally.
However, as some diseases, such as asbestos poisoning, may not manifest themselves for periods long after an employee has left the service of the company, it is advisable to keep them to prove your cover during the claimant’s employment, should such a case arise.
The power of authority governing this cover in the UK is the HSE (Health and Safety Executive) as that is exactly what this policy is intended to do, cover the health and safety of the employee.
If, however, that employee is based in another country, you only need insure them if they spend periods of fourteen continuous days or more in Great Britain. However, if the law of the land in which they’re based dictates that this insurance is a legal requirement, you will be expected to provide that for your foreign workforce, also.
Insurers may have differing terms and conditions; it is always worth checking the small print so that you are familiar with exactly what is and isn’t covered.
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