Employers Liability Insurance

Anyone starting a new business should be aware of laws governing companies and businesses with employees. Employers liability insurance is required by law in the UK. A business owner with employees who are not close family members is required to take out at least £5 million in employers liability insurance coverage; however, most insurance agencies in the UK offer a minimum £10 million package.

While having to take out employers liability insurance may seem like an unnecessary expense, it is in fact a security net that will protect a business and its owner. This type of insurance will provide compensation if an employee falls sick or is injured at work and it is the fault of the company. This type of insurance also covers fatalities. Employers liability insurance will pay for an employee's medical bills as well as enabling the business owner to defend a lawsuit brought by an injured or sick employee.

A company can be heavily fined for not taking out this cover. A business owner should ensure they have employer liability insurance at all times. Records of this insurance should always be kept. It is not uncommon for an employee to file a lawsuit years after leaving a company, on the grounds that his or her time at the company has made him sick.

Often, employer liability cover can be combined with other forms of business insurance that are required by UK law. By consolidating numerous forms of insurance in the same package, a business owner can save money.