Employers
Liability
Insurance

If your business has 2 or more directors then the law states you will need to purchase Employers Liability insurance.

If you hire labour-only subcontractors, you will need Employers Liability Insurance, even if you only hire them for a short term or for one particular project.

If you hire fully self-employed subcontractors, then you may not need employers liability insurance. If you’re unsure, please contact us (contact-us) and we’ll advise you in regard to your specific situation.

If you are giving someone instructions about the work they need to do and/or they are using your organisation’s equipment, then that means that you are responsible for their Health and Safety, and therefore need employers liability insurance. The fact that they haven’t got a contract of employment is a separate matter, but doesn’t negate the need for this type of insurance policy.

Students on a work experience placement are also included in this insurance, although dependent on the type of policy held, it may be necessary to pay a small premium to cover them, so make sure to let your insurer know before any work experience employees start work.

If your business is NOT a limited company and only employs family members, then legally you do not have to buy EL insurance, although we would still recommend you do.

If you are a Limited Company, a PLC or a LLP then you will definitely have to buy Employers Liability insurance to cover family members.

Employers Liability only provides insurance for injuries or illnesses caused in the course of employment, so does not cover redundancy.

Employers Liability like most types of insurance cannot be backdated.

Employers Liability is heavily regulated so most policies cover most scenarios BUT virtually all insurance companies have their own unique clauses and restrictions, for example ‘no working at greater than 4 metres in height’, but as your broker, we would discuss and agree these with you before recommending a policy.

Should an organisation be found to not have the required insurance, it could be prosecuted by the Health and Safety Executive. In addition to being fined for being without insurance, the injured employee could sue the business (and potentially the business owner/director). The company would then be responsible for paying any compensation and legal costs.

If you’ve previously had employers liability insurance, always keep the insurance paperwork for as long as you can, as you must retain copies of expired insurance certificates for at least 40 years. It’s important to keep the paperwork in case an employee discovers something that is wrong with them which resulted from their employment with you. Typical examples of this include industrial deafness claims or asbestosis.

If you haven’t got your insurance paperwork from back then, you could be liable to pay a percentage of the claim yourself, as it’s the insurer who was ‘on cover’ at the time of the incident who has to pay. If you can’t prove which insurer was on cover, you will have to fund the claim.

If you need to make a claim on your employers liability insurance, you need to call your insurance broker or insurance company straight away.

If you have employers liability insurance with Prizm Solutions, then you simply call us. As your broker, we are here to help – and we will provide you with all the contact numbers you need to deal with a claim when you take out the policy.

The list is constantly changing as insurers enter and exit the market, but a present we primarily use Aviva, AXA, RSA, Lloyds Underwriters, Zurich, QBE, Allianz, IIGL, Angel (AXA XL), Beazleys, Travelers, AIG, CFC Underwriting, Markel, Chubb, Arch, Corin, Convex, Eaton Gate, Covea, Ecclesiastical, HCC, Folgate, Geo, Hiscox, NIG and MS Amlin.