No matter how aware you are of health and safety issues in your workplace and despite your best intentions, accidents can and do happen. Someone who works for you could slip or fall, have a scalding hot drink spilt on them, suffer a reaction to products they work with, or just have a freak accident that no one could foresee. Then there are also chronic problems that develop slowly over time and stress-related conditions that an employee might say is due to their work. In any event, you are legally responsible for the safety and wellbeing of everyone who works for you. This is why employers’ liability insurance is a key part of your business policy.
These issues apply to permanent members of staff who work full time for you, but also to a friend or someone you know really well stepping in to help you out for a short period. There’s always the chance of a genuine mishap or of being wrongly accused. When life throws you a curveball, you need to make sure you’re not caught out.
What is employers’ liability insurance?
Someone who works for you (or someone who has worked for you previously) may become injured at work or become ill as a result of their work in your employment. If they think you are responsible, they could decide to claim compensation from you. Employers’ liability insurance will cover you for the cost of any compensation you have to pay and the legal costs involved. (Public liability insurance would not cover this situation – it covers you for claims made against you by members of the public but not for claims by employees).
If you employ staff, you are legally obliged to have employers’ liability insurance. It doesn’t matter what kind of work they do for you or whether they’re full time, part-time or working as a trainee or apprentice. The Health and Safety Executive (HSE) enforces the law on employers’ liability insurance. Inspectors can ask to see your certificate of insurance and you can be fined for not displaying it or refusing to make it available, even if no one is injured or ill.
There are a few exceptions to the requirement to have employers’ liability insurance. If you run a family business and all of your employees are closely related to you (husband, wife, civil partner, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister) then you are exempt. However, if you have a family business which is a limited company, then this exemption does not apply. Also, for a limited company which has only one director who owns 50% or more of the shares, and no other employees, employers’ liability is not required.
What Do You Get With Employer’s Liability?
Our Employers’ Liability cover includes:
Salon insurance customers:
- Employer’s Liability cover is included as standard
- Up to £10,000,000 cover any one claim
- Cover automatically provided for all staff, apprentices and volunteers
Mobile & Freelance insurance customers:
- Employer’s Liability cover is available as an optional extra
- Cover is available for up to £10,000,000 any one claim
Whether you work from a salon, a clinic, a gym, or from your home, Salon Gold employers’ liability insurance has you covered.
The legal requirement is £5m but the Salon Gold cover is £10m to make sure you’re protected.
If a claim for compensation for an injury or illness is brought against you, employers’ liability insurance will meet the cost of any compensation that you are ordered to pay, together with the legal fees and expenses. Even if a situation arises in which you are not at fault, this cover will avoid having to pay hefty legal defence fees from your own pocket.
When you take out or renew your business policy, you’ll get a certificate of employers’ liability insurance. You have to display this where your employees can read it, or you can display it electronically as long as your staff can access it easily. You’re not obliged to keep copies of old certificates but it is still very important to keep full records of your previous insurance in case any of your employees make claims relating to injuries or illness caused in the past.
If you take out a Salon Gold salon policy, you will get employers’ liability insurance automatically. However, if you have a freelance/mobile policy, you may well not have anyone working for you, so employers’ liability is an optional extra cover that you can add if you need it.
Which type of Salon Gold policy do I need?
Find out which insurance policy is right for your business by clicking below.
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Employer’s Liability Insurance FAQs
Employer’s Liability Insurance FAQs
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 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.
Employers’ Liability Insurance Related Articles
Quick and easy to do, thanks so much Salon Gold
Quote and payments very user friendly Used salon gold for 5 years now. No problem. Timely reminders with easy link to renew Luckily never had to make a claim so can’t comment on that aspect.
Very easy to do , and very affordable