Employers’ liability insurance provides cover for businesses in the event of accidents in the workplace. Your business can be fined up to £2,500 for every day that it doesn’t have proper Employers’ Liability insurance. It can also be fined up to £1,000 if the insurance certificate isn’t adequately displayed in the workplace.
This legislation applies to all businesses except those who employ only family members, including:-
· Spouse or civil partner
· Parents & grandparents
· Siblings & half-siblings
· Children & grandchildren
· Step-parents & step-children
Employees who are not ordinarily resident in the UK are also normally exempt. Any insurance policy must be purchased from an authorised insurer and the minimum level of cover is £5 million, as per the Employers’ Liability (Compulsory Insurance) Act 1969.
It’s also worth remembering that any officer of a business who consensually, or neglectfully, fails to put an appropriate policy in place may be proceeded against personally. So, such cover not only makes sound business sense, but ensures you are not breaking the law!
If you’re unsure about your responsibilities, or if you’d like and introduction to an authorised broker to arrange your policy, then make sure to contact your accountant for some guidance.
If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk