Also commonly known as ‘employer’s liability’, employee liability insurance is a mandatory requirement by law for any business owner who employs one or more people. This type of cover helps to protect both your workers and your business interests, working alongside the health and safety procedures you have in place.

Depending on your place of work, the environment and the equipment your employees need to use, the potential risks and dangers can vary. This can include a slip or fall on the warehouse floor, serious injury caused by faulty equipment or the result of breathing in harmful dust or chemicals.

If one of your employees is personally affected because of their job, they may be able to claim compensation from the business. With employer’s liability insurance in place, you can operate safe in the knowledge that you’re covered should any of your staff claim compensation or pursue any legal proceedings.

As it’s a minimum requirement, if you have no liability cover for your employees you could end up having to pay a fine of up to £2,500 for every day you go without cover. These fines can even be back-dated, adding up to a massive penalty if you’re found to have lacked employer’s liability insurance for some time. That’s why it should be a massive priority to sort out before anyone starts working for you.

The majority of business owners will need employee liability insurance as standard. However, there may be exemptions in some cases, for example if you don’t employ anyone, if your only employees are direct family members or if you only employ non-UK citizens at a site abroad.

It may not be necessary to have employer’s liability cover if you only have unpaid volunteers, interns or students in a training programme operating in your business. When it comes to all other paid employees, the level of cover you need will depend on the number of staff applicable and the potential for risks.

At the very minimum, your policy should provide for £5 million worth of cover, but you may find it beneficial to extend this to £10 million or potentially more if necessary. You’ll want to think about the nuts and bolts of your business’ processes and practices to determine the likelihood of you making a claim at some point.

It’s estimated that almost 2% of people across all industries will experience an injury in the workplace every year. The risk of accident or illness will vary depending on the type of work your employees do and the environment they operate in.

For example, those working in a café, coffee shop or restaurant, staff may be at risk of accidental cuts or burns from knives or equipment preparing hot food. Potential dangers in the construction industry, however, may come from faulty heavy machinery or scaffolding that hasn’t been secured properly.

In fact, figures relating to the construction industry alone suggest that up to 150,000 workers each year will become injured or ill because of work. Ultimately this means that the value of employee liability insurance should never be underestimated, no matter what work your staff carry out or however likely the risks may or may not be.

Clyde Insurance Brokers are specialists in many aspects of business insurance to help you take the hassle out of finding the right cover to match your needs. Whether you have one employee or hundreds, we can provide you with a tailored policy that best suits you and your staff.

To get started, you can call 0000 000 0000 or click on the “Get a quote” button to pass us a few quick details about you, your business and your requirements. Using our diverse panel of insurance providers, we’re certain we’ll find you the best policy to suit you at the lowest possible premium.