Total Protection From Employee Mishaps
Whether you’re running a salon or a mobile and freelance business, you know if you employ staff, the very last thing you want to have weighing on your mind is your staff being injured whilst on the job. And it’s not only because of the potential dent to your profits while they’re out of action – worse still, it’s the potential for a compensation claim that could cost you tens of thousands of pounds, if not more, if someone were to be seriously injured as a result.
This is where your employer’s liability insurance cover steps in. It acts as a buffer for these types of claims, as well as a range of others, so that instead of having to find the money to pay the claim out of your own pocket, your policy will cover it and your insurer will pay out the incurred costs on your behalf – freeing you up to spend a little less time worrying about what the future may hold, and a bit more time on running your business and making it a success.
Unlike public liability, employer’s liability is not an automatic cover, however it can be added to any standard Salon Gold, Holistic Gold, Fitness Gold or Counselling Gold policy if you do need it.
The Legalities Of Employer’s Liability Insurance: Do You Really Need It?
If you’re running a business and employing staff, employer’s liability insurance is legally required by law. However, there are a few exceptions to this.
For example, if your business is a Limited Company which has only one employee who owns 50% or more of the issued share capital in the company, then you won’t be obliged to take out an employer’s liability insurance policy. Also, if your business isn’t a Limited Company and either a.) you’re the only employee, or b.) you only employ close family members, then once again, employer’s liability isn’t compulsory. However, even in these circumstances, we would still advise taking out employer’s liability insurance, as it can give you an extra safety net if an unforeseen accident were to occur.
The other exception is salon owners who rent space or chairs out in their salon. In this case, you don’t need employer’s liability to cover for the freelancer renting space, however we would insist you ensure that you have a contract in place with the freelancer and that you keep records of their current insurance policy, and check it every renewal time, to ensure it is still valid. You don’t want to end up facing a compensation claim because of something they have done to a client in your salon.
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The Limits Of Employer’s Liability Insurance: What Do You Get?
Our standard cover is:
- £10 million employer’s liability cover
You can also add cover for working partners or cover for any temporary staff as optional extensions to your employer’s liability cover. Our freelance policies are designed for a maximum of 10 manual employees, including working partners and clerical staff. If you have more than 10 employees, please contact us directly and we’ll be able to arrange the cover you require over the phone. There is no limit on employee numbers for our salon insurance.
Employer’s Liability Insurance: Frequently Asked Questions
Why do I need employer’s liability?
Employer’s liability is a legal requirement for any business employing one or more employees. However, there are some exemptions to this – you can read more about this on ‘The Legalities Of Employer’s Liability: Do You Really Need It?’ section of this page.
Do I need employer’s liability cover for rent a chair or rent a space freelancers in my salon?
For salons that allow freelancers to rent a chair or rent space on their premises, you don’t need employer’s liability insurance, as the freelancer is self-employed. However, we would advise that you ensure you have a proper contract drawn up with said freelancer and that you keep records of their current, valid insurance, and check it again at their renewal time. If your freelancer doesn’t have insurance in place, this could inevitably come back on your salon should they have an issue with a client, and you may end up being faced a claim caused by them, so it’s best to ensure you have taken all the necessary steps to ensure this doesn’t happen.
Will I get a certificate of employer’s liability?
As soon as you’ve purchased your Salon Gold, Holistic Gold, Fitness Gold or Counselling Gold policy, your certificate of employer’s liability will be emailed directly to you, alongside all your other important policy documents. You’re required by law to display this somewhere where your employees can see it, and also have it available if you’re asked to produce it by a health and safety inspector. If you choose not to do this, you could be liable for a substantial fine.
Do I need to keep my employer’s liability insurance records?
Yes; it is advised you keep all your papers. The reason for this is that, in the event that an employee of yours was exposed to something that caused an illness, it may take years for the condition to develop. In these situations, you’d need your insurance details for the period when the exposure occurred, so it’s in your best interest to keep these filed away somewhere where you can find them should you ever need to produce them.
Why do I need to supply my ERN/PAYE number?
When taking out employer’s liability insurance, all insurers will require your ERN/PAYE number which you use to pay your staff. If you pay your staff below the current threshold then you may not have an ERN/PAYE number. Insurers need this number so that they can trace the insurer of any business should an employer’s liability claim be made in the future.
Can an employer’s liability claim be made against me if I become bankrupt?
Employees who become injured or ill as a result of negligence by their employer can make an employer’s liability insurance claim against the business, even if the business were to go into liquidation.