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Frequently Asked Questions(click to expand)
What Is Employers’ Liability Insurance?
If an employee or former employee becomes ill due to the duties performed as part of their role then they may sue the business for compensation. ELI provides cover so that it can pay for legal fees and compensation costs in the event of a lawsuit.
Who Needs Employers’ Liability Insurance?
The only exceptions to this are:
- sole traders
- own limited companies
- zero employees
- sole traders with only close family members employed
Anyone that buys Employers’ Liability insurance also needs to ensure that the official certificate is displayed clearly on the business premises or that copies are sent digitally to all employees. Failure to provide a certificate or access to it may result in a fine.
What Does Employers’ Liability Insurance Cover?
- any permanent employee
- casual, short-term contract, temporary or seasonal employee
- student or person on work placement
- voluntary worker
An Employers’ Liability claim can only be made if the injury or illness was caused either in the workplace or as a result of the employee’s duties. For example, an employee may be using an office chair that collapses, causing them an injury. If their employer did not take reasonable precautions to ensure that health and safety checks were carried out on office equipment then they may be liable for a claim made against them. The costs covered by such claims can include:
- financial compensation for the injured employee
- loss of earnings
- medical expenses and rehabilitation costs
- any other expenses (eg travel, medication, etc)
- care provided by family or friends
As Employers' Liability insurance is compulsory, policy exclusions are not permitted. However certain factors such as pre-existing conditions or deliberate acts will not be considered.
How Much Does Employers’ Liability Insurance Cost?
Some regulators may specify a minimum coverage limit but most insurers offer high amounts of coverage. Therefore it is best to check what is required as statutory depending on the nature and size of the business.