Employers Liability Insurance - The Basics

Employers Liability Insurance - The Basics

Employers Liability Insurance - The Basics

31 Oct 2019

Need Employers Liability Insurance? Not entirely sure what it is?

Understanding the basics of Liability Insurance

Sometimes it’s hard to know what you need covered in your insurance policy and why. Employers Liability Insurance is one of the most common types of insurance available to purchase, but you may be wondering why that is. Do you need Employers Liability Cover? How is it a benefit to you? This article explores that very basics of ‘EL’ Insurance, answering the most common questions we get asked.

What does Liability Insurance mean and why is it different from regular PI?

Liability Insurance is a form of Insurance protecting you from physical harm to yourself or your property, caused by a third party. This can be split into two forms of liability cover: Employers Liability and Public Liability. Employers Liability = Protects you from bodily / personal injury where your employer is responsible. Public Liability = Protects you from bodily injury and property damage caused by a third party individual or service. This is a little different from PI (Professional Indemnity), an insurance policy designed to protect you from varying different kinds of claims, settlements or legal fees as a result of professional negligence in a company’s/individual’s advice or services.

The Employers Liability Act (1969)

The ‘Employers’ Liability (Compulsory Insurance) Act 1969’ is a UK Act of Parliament, requiring every employer to carry insurance against the personal injury of their employees. In other words every UK Employer has to carry a special kind of business insurance called “Employers Liability”, covering a minimum of £5 Million (GBP), in order to employ people for their business.

What does Employer Liability Insurance Cover?

Employers Liability Insurance is designed to protect you from claims made by your staff/employees. If an employee becomes injured or becomes ill because of the work they do for you, your insurer will pay out compensation and legal costs to cover the claim, where you as an employer are deemed responsible and liable.

Do I need Employers Liability Policy?

If you are an employer working within the UK this is a legal necessity – otherwise you could face fines up to £2,500 per day that you are not insured.*As per regulation, your insurance policy must cover a minimum level of £5 Million (GBP) but most insurers will offer a standard level of cover at £10 Million (GBP). You may also be fined in £1,000 if you do not display your Employers Liability Insurance Certificate or refuse to make it available to inspectors when requested.

* Information sourced via the government website

Understanding the basics of Liability Insurance

Sometimes it’s hard to know what you need covered in your insurance policy and why. Employers Liability Insurance is one of the most common types of insurance available to purchase, but you may be wondering why that is. Do you need Employers Liability Cover? How is it a benefit to you? This article explores that very basics of ‘EL’ Insurance, answering the most common questions we get asked.

What does Liability Insurance mean and why is it different from regular PI?

Liability Insurance is a form of Insurance protecting you from physical harm to yourself or your property, caused by a third party. This can be split into two forms of liability cover: Employers Liability and Public Liability. Employers Liability = Protects you from bodily / personal injury where your employer is responsible. Public Liability = Protects you from bodily injury and property damage caused by a third party individual or service. This is a little different from PI (Professional Indemnity), an insurance policy designed to protect you from varying different kinds of claims, settlements or legal fees as a result of professional negligence in a company’s/individual’s advice or services.

The Employers Liability Act (1969)

The ‘Employers’ Liability (Compulsory Insurance) Act 1969’ is a UK Act of Parliament, requiring every employer to carry insurance against the personal injury of their employees. In other words every UK Employer has to carry a special kind of business insurance called “Employers Liability”, covering a minimum of £5 Million (GBP), in order to employ people for their business.

What does Employer Liability Insurance Cover?

Employers Liability Insurance is designed to protect you from claims made by your staff/employees. If an employee becomes injured or becomes ill because of the work they do for you, your insurer will pay out compensation and legal costs to cover the claim, where you as an employer are deemed responsible and liable.

Do I need Employers Liability Policy?

If you are an employer working within the UK this is a legal necessity – otherwise you could face fines up to £2,500 per day that you are not insured.*As per regulation, your insurance policy must cover a minimum level of £5 Million (GBP) but most insurers will offer a standard level of cover at £10 Million (GBP). You may also be fined in £1,000 if you do not display your Employers Liability Insurance Certificate or refuse to make it available to inspectors when requested.

* Information sourced via the government website

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Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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