This is one of the most important types of insurances as it is made mandatory by the legislation. Yes! Any business or corporate should have this kind of insurance to make sure that the interest of their employees is protected. It is also compulsory as it is implemented to support the business’s health and safety procedures. It protects the business against any claim of an employee who becomes ill due to work.
The insurance covers the cost of legal expense and compensation provided to the employee whose health gets affected due to work reasons. Missing out on this cover results in a fine of £2,500 per day. So, it is better to purchase this cover for your business. You must have it otherwise the fine will prove disastrous for your business and may turn out to be a big financial blow.
The cover is mandatory for businesses that have the following:
Full or part time staff
Interns, volunteers and temporary staff
If your staff members have retired then keep a record of the expired certificates so that no one can make a false claim. There are chances that people make a claim for contracting diseases after retirement or years after leaving the company. In that case, the records will help you in managing the legalities. You can get an exemption on this insurance only if all the members of your staff are your family members or if the company is run single handily by you.
>What should be the worth of employee liability cover?
Total amount for the cover depends on the number of employees in your company and the amount of risk associated to them. It is solely dependent on the kind of work that your business requires from your employees. The riskier it is the higher the cover it needs. Ideally such an insurance policy should have a cover of at least £5m but it may extend up to£10m or more. Still, the exact amount could be decided only after the insurer does the risk analysis of your business.
Major concerns with the cover:
After taking the certificate, you must display it in the office. It should be produced on request otherwise you will need to pay a fine of £1,000. So, make sure you get the certificate and keep it safe as well.
To get a cheaper solution, you can join employer’s liability insurance with public liability insurance. This way, you will have to pay premium for just one policy and not two. It will be easy to remember as well. However, the cheapest option may not be the best solution for you. So, compare all kinds of policies and then decide to get the one that suits you the best.