Employer's Liability Insurance
What is this?
Most employers are required by the law to insure against liability for injury or disease to their employees arising out of their employment.
Who is it for?
You are responsible for the health and safety of your employees while they are at work. Your employees may be injured at work, or they or your former employees may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.
Who is it not for?
You need employers’ liability insurance unless you are exempt from the Employers’ Liability (Compulsory Insurance) Act. The following employers are exempt:
- most public organisations including government departments and agencies, local authorities, police authorities and nationalised industries.
- health service bodies, including National Health Service trusts, health authorities, primary care trusts and Scottish Health Boards.
- some other organisations which are financed through public funds, such as passenger transport executives and magistrates’ courts committees.
- family businesses, ie if your employees are closely related to you (as husband, wife, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister). However, this exemption does not apply to family businesses which are incorporated as limited companies.
- companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company.
