Who Needs Employers Liability Insurance?
It is a legal requirement and any business has to have it or they can face fines. The Health and Safety Executive is responsible for enforcing the law on employer’s liability insurance and you can be issued fines of up to £2500 for any day that you are without cover. It doesn’t matter how many employees you have, be it one or one hundred, you have to have employers liability insurance.
What Defines an Employee?
Someone is your employee if:
- You deduct national insurance and income tax from any salary you pay them
- You control when, where and how they work
- You cannot employ a substitute when they are unable to do the work
Below are two examples of when a claim might be brought against a business. They are very different, illustrating the need for every business to have cover.