Employers’ liability insurance
If you employ anyone, then by law you’ll need to have employers’ liability insurance. Even if you only employ one person, whether that’s on a full-time, part-time or casual basis – you must have it. If you don’t then you can be fined up to £2,500 for every day that you don’t have it (so you’d better check).
It covers you for any claims made by an employee because they’ve suffered injury or illness through work. The only exemptions are businesses with no employees, family owned business that only employ close relations and organisations run through public funds.
Your policy should cover all permanent employees, contract and casual staff and sub-contractors. The way to tell if you employ someone is to ask yourself:
- Do you deduct National insurance and income tax from their salary?
- Do you dictate their working hours, place of work and work conditions?
- Can you replace them if they are unable to work?
If you answer: yes, yes, no then bingo! you’re an employer and you need employers’ liability insurance.