About one million small businesses in the UK may be unknowingly breaking the law by not having employers liability insurance.
Employers’ liability insurance is compulsory for all employees, with some exceptions. According to Aviva, 17% of small businesses do not have employers liability insurance. Considering he has 5.5 million small businesses in the UK, that means over 900,000 are breaking the law.
Businesses found not to have employer liability coverage could also be fined £2,500 for each day they were not properly insured.
Employers Liability Insurance – Don’t Find Out! All small businesses, regardless of their profession, have risk factors that can affect their employees.
Moreover, you can also be fined £1,000 per day Failing to display the EL certificate or refusing to present the EL certificate at the request of the inspector.
Employer liability insurance is not only mandatory, it is clearly necessary. According to the Association of British Insurers, insurers pay nearly £2m each year to settle employer claims.
This means that employers can claim compensation when an employee is absent from work due to physical or mental injury.
How long does employer liability last?
For company employees, the average cost of employers liability insurance is £61. This rises significantly to £213 per employee when doing manual labor, such as construction, according to the company. Statista.
The minimum level of employer liability coverage required for businesses is £5m, which protects businesses and merchants from claims from existing and former employees who have been injured or become ill as a result of their work.
However, companies that are not limited liability companies and employ close relatives or companies where the owner is the only employee and owns at least 50 percent of the company’s issued share capital are exempt.
Learn more about Employers Liability Insurance
Employers Liability Insurance Explained – Judith Rutherford outlines which businesses should have employers liability insurance and why.
Small business insurance: what to look for in a policy – In this article, we’ll take a look at different business insurance coverages to consider for small businesses.