Employers Liability Insurance

Employers liability insurance (EL) is a compulsory insurance policy which all business owners must have if they have any employees. If you are the managing director of a limited company you will also be required to have employers liability insurance by law.

EL is designed to cover your employees so that in the event they suffer any physical injury or death, and it is proven that as an employer you acted negligently and subsequently could have prevented their loss, if they then decide to pursue you for compensation the insurer will pay the cost of the claim. EL is not designed to cover you against the risk of being sued for claims such as sexual discrimination, wrongful dismissal etc.

The definition for employers liability is:

Insurance by employers in respect of their liability to employees for injury or disease arising out of and in the course of their employment.

What is the difference between public liability and employers liability insurance (EL)?

EL is concerned with covering your employees, so that in the event that they have an accident and were unable to work they would be guaranteed to receive compensation. This obviously depends on who was at fault for the accident, i.e. whether it was the employers negligence or the employees.

Public liability insurance (PL) is concerned with covering businesses against being pursued by third parties who claim that as a direct result of the business owners negligence they have suffered physical injury or death.

So in summary EL is concerned with your employees welfare and PL is concerned with covering you from claims in respect of third parties. Learn more about public liability insurance.

What is Employers Liability?

In the event an employee is physically injured or dies, they or their relatives will be able to sue your business for compensation. EL will cover you for the compensation that will have to be paid out.

Is Employers Liability Insurance really required by law?

EL is a compulsory insurance that the law says you must have. If you do not have employers’ liability insurance, health and safety executives could shut you down permanently.

Who Needs Employers Liability?

Any company that has any employees needs employers liability insurance by law.

How Do Claims Arise?

A claim can arise in a number of different ways, if an employee is injured or dies as a result of the companies negligence then they will be help responsible.

What Is The Minimum Amount Of Employers Liability Insurance That I Need?

If you have any employees then you will need EL. Even if you are a limited company and have only one employee, i.e. the manageing director, you are still required to have EL by law.

Learn more about Liability Insurance Learn more about Public Liability Insurance Learn more about Professional Indemnity Insurance