Is employer’s liability insurance compulsory?
With very few exceptions, employers’ liability insurance is a legal requirement for businesses with one or more employees. Employers who don’t hold this insurance may face a fine of up to £2,500 per day until the policy has been purchased.
What does employer’s liability insurance cover?
Employer’s liability insurance covers compensation payments in the event that an employee sues you for an illness or injury directly related to their job. This insurance will cover the costs of medical expenses, legal fees, and lost income, so you won’t have to worry about footing the bill.
How much employer’s liability insurance do I need?
You usually need at least £5 million of employers’ liability insurance to comply with the law. The Salon Gold policies give £10 million to ensure you’re protected.
Do I need employer’s liability insurance for self-employed staff?
Whether or not you need employers’ liability insurance for a person who works for you depends on your contract with them, your relationship with them and the amount of control that you have over the work they do. You’ll need to have cover if you deduct national insurance and income tax from their wages, if you control where, when, and how they work, supply materials and equipment for the job, and if their work means that they must carry out the service themselves – i.e they cannot employ a substitute if they’re unable to do the work.
If you rent out space in your salon to a freelance hairstylist or beauty therapist, you may not need employers’ liability insurance, but this will depend on factors such as tax, who supplies the equipment, and whether or not they work exclusively for you.
Should a certificate of employers’ liability insurance be displayed?
You legally need to display your employer’s liability insurance certificate and give your employees access to it. This can be as a physical or a digital copy.
Can employees make a claim against me if I become bankrupt?
Even if your business goes into liquidation, employees who fall injured or ill due to your negligence as an employer can make a claim against the business. This is why it’s crucial to have an insurance policy in place to protect you against any claims that may be made so you won’t have to pay the bill in full.
Who needs employer’s liability insurance?
If you run a business and have 1 or more employees, you will legally need to hold employer’s liability insurance. However, if your business is a limited company with one employee owning at least 50% of any issued shared capital, you are under no obligation to take out employer’s liability insurance cover. There is also an exemption if you only employ certain close family members.
How much is employer’s liability insurance?
The cost of your insurance policy will depend on what other covers you need. Get a quote online now, with instant cover.
Why is employers’ liability called long tail insurance?
Employees or ex-employees can bring a claim against an employer years after an incident occurred if it subsequently led to an injury or illness later on, for example, a chronic back problem that developed slowly. You will be asked to prove that you were insured at the time of the cause. Details and dates of cover can be found on an employers’ liability insurance certificate. (If the appropriate insurer cannot be traced, the company may well be ultimately responsible for the loss). The term long tail insurance reflects the sometimes long interval between the cause of illness and the time that it becomes apparent.
