What protection does Employers Liability Insurance provide to the business?
Employers Liability Insurance is designed to protect both the business and the employee. In principle, an employers’ liability insurance policy can insulate the employer from a range of costs in the event of:
- An employee suffering a loss as a result of their work.
- An employee suffering illness as a result of their work.
- An employee suffering injury or death as a result of their work.
The level of cover is flexible, with the law stipulating a minimum of £5m. It’s worth speaking with our broker team who will be able to advise you on what level of cover is appropriate in your particular circumstances. We have significant experience advising businesses on their employers liability insurance, and will take the time to understand your business and review any contract documentation that you may have – which often stipulate an employers’ liability insurance requirement.
Where an employee suffers a loss, illness, injury or death as an alleged consequence of their work, they or their representatives may make a claim against the business. In such circumstances, costs can quickly escalate for the employer, even if the claim isn’t genuine. Employers’ liability cover will pay out to cover the business for:
- Legal costs incurred in defending a claim
- Any compensation payments that are rewarded to the employee in the event of a successful claim
Outside of the financial considerations, having the right business insurance in place means that in the event of a claim, you know that you can continue to run the business with minimum disruption.