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Why You Really Should Have Employers’ Liability Insurance!
Posted by David Cant on June 29, 2015

Why You Really Should Have Employers’ Liability Insurance!

why you need employers liability insuranceAnother week – another business wincing as they get handed a hefty fine for doing something that they could have totally avoided.

Or in this case – it’s the not-doing that landed them in hot water with the HSE, when a Staffordshire company ended up being hit with a fine for not having their employees insured.

See what happens when you try to cut corners and save money? Not worth it!

And if you’re still not convinced (and think you can skip out on employers’ liability insurance yourself) read on – and discover why it’s so important to you:

What exactly is it?

Employers’ liability insurance isn’t just some fluff title on a piece of paper you tuck away to gather dust in a filing cabinet.

It actually is a very important aspect of your duties as an employer – and it can be really helpful to have too!

Its basic role is to cover businesses for the cost of damages or legal fees for any employees who find themselves hurt or made ill by their work  – and this is in fact why it’s compulsory for businesses to have it in place!

Do you have to have it for all employees?

Short answer: yes.

Long answer: yes. And that includes temp workers, seasonal workers, volunteers and interns.

Think of it this way – just because someone might not be a full time paid member of staff, is this going to stop them taking action if they were to get hurt or ill at the workplace?

Just remember that your insurance policy is there to protect your business – so don’t skimp on it!

What about members of the public?

It’s easy to mix up employers’ liability insurance and public liability insurance, but the two are both very different things. Don’t make the mistake of thinking that you’re covered on both grounds with one policy.

Employers’ liability insurance covers the employer in case an employee gets hurt or ill as a result of the workplace. But ordinary members of the public aren’t covered by this – which means that if someone was to get injured and make a claim, you’d have to pay the full bill!

Public liability covers employers for claims made by members of the public – but it doesn’t cover employees! So make sure that you have both.

Does everyone have to have employer’s liability insurance?

Virtually every business needs to have insurance in place – but just for completion, there are a few exceptions to the rule!

This includes: public organisations such as local authorities, police and government bodies; health service bodies, and any organisation that takes public funds for any part of their activities.

For anyone else, you better make sure that you have it!

Your takeaway points

  • Employers’ liability insurance is completely essential to you
  • It’s necessary for all businesses to have in place, and its main role is to protect your business in the event that an employee is hurt while working
  • You have to have it for all types of employees, including temporary and seasonal workers
  • There are only a handful of businesses exempt from employers’ liability insurance, so check if you’re not sure!

Have you got any questions about insurance? Give us a shout if you do!


David Cant is a Chartered Safety and Health Practitioner extraordinaire. He has a wealth of Industry experience and is the MD of Veritas Consulting. David also Blogs about Health and Safety here Health and Safety Consultants

His aim is to flavour Health and Safety with integrity, served with a side of humour You can find David on - Twitter and Google also Linkedin

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