Employers' Liability insurance can be a thorny issue. Recent surveys suggest that many small and medium-sized businesses consider it optional, which some choose not to take. However, it is an absolute must if you employ any staff, even on a casual or part-time basis. You are required by law to have it and face a fine if you don't.
ELI protects you from claims made against you if an employee falls ill or has an accident while working, which they believe is your fault. ELI will cover compensation payouts if this proves to be the case. The minimum cover is for £5m, but you’ll find most policies start at £10m, as you will also have to cover legal costs.
You must display your certificate where staff can read it, and it’s a good idea to check your rights and obligations with the Health and Safety Executive.
It’s important to remember that having ELI does not make you untouchable. As an employer you are responsible for the health and well being of your staff and you must ensure you honour all your health and safety obligations, such as carrying out a risk assessment, and have the paperwork to back this up.
If not, you may find that insurers won't pay out, your premiums are affected, or, if they are still required to pay for your compensation they may be entitled to sue you to claim it back.