The Custodian Insurance Industry Blog

March 4, 2014

Trouble on two legs – why take the risk?

Whether you are a large property agent with lots of employees or a surveyor with just one employee, it is a legal requirement for all employers to have employers’ liability insurance.

Running a company may come with its own headaches, but employers’ liability insurance doesn’t have to be one of them. With professional help from an experienced broker, it‘s never been easier to meet your employer responsibilities.

Naturally, you want to look after your staff and ensure their wellbeing during working hours – employers’ liability insurance does just that. It enables employers to cover the cost of compensation claims made against them by employees for accidents or illness, which occur during working hours or as a direct result of an employee’s work and working conditions.

If you don’t have employers liability then your business could be in jeopardy. In one known case an employer at a small electrical firm was forced to pay £17,500 in compensation after an apprentice suffered an electric shock whilst at work.

In another case the employer had not taken out employers’ liability insurance as he didn’t think it was necessary with only a few employees. Weeks later, a Health and Safety Executive (responsible for enforcing the law on employers’ liability) found that the employer had not had employers’ liability insurance for at least 300 days. The employer was fined £2,500 for each day that he wasn’t insured correctly, which meant that the business had to cease trading.

These may be extreme cases,  but they do demonstrate how serious employers’ liability insurance is. If you are unsure whether you comply and would like more information, we can help.

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