Is Employers’ Liability Insurance Obligatory in the UK and Why
A lot of people aren’t exactly familiar with how the compensation for injured and ill workers functions in the UK.
Unlike the United States, where workers’ compensation is a big issue and there are attorneys and companies centred exclusively on this topic, the situation in the UK is a lot simpler.
Every employer needs to have Employers’ Liability Insurance when you employ someone. Your insurance needs to be issued by an authorized insurance company, and the minimum coverage needs to be £5 million.
Exceptions
Even though the law is pretty strict and pretty clear on the subject, there are some workarounds you might be able to use.
Namely, if your only employees are your family, you can go without this insurance.
Additionally, having workers who are based abroad also nullifies the need for this type of insurance.
Why Is the Insurance Necessary?
Well, for starters, if you don’t have the insurance, you may be fined. However, this is not a one-time fine which you can absorb and go on with your business.
You will be fined up to £2,500 each day until you buy this insurance policy. Just to show you that they are serious about this kind of insurance, the inspectors can fine you additional £1,000 if you do not display your EL certificate somewhere where it can be seen, or if you don’t show it to the inspector when they ask for it.
What Does It Cover
The employers’ liability insurance covers all of the medical costs of your employees in case they were injured at work.
However, it does more than that. It is also a fund which should help employers pay the missing wages to the employees and finally, if the employee sues the employer, this is where the money will be sourced from.
How Much Is Enough
As mentioned before, the bare minimum coverage is £5 million, which is a substantial sum of money, but this is just the minimum which you need as soon as you employ a single person.
Depending on your industry and the number of people currently working for you, your insurance needs might change.
The best thing to do is to consult EL insurance experts and tell them about your operation. They will be able to give you an estimate.
Shop around with different insurance companies until you find something that is suitable for you.
When to Claim Insurance
There are two broad categories of workers recognized by the El insurance – manual labourers and clerical workers.
The risk factors for these categories are different, but they do overlap. A person slipping on the wet floor, or falling down the stairs due to the faulty railings can happen to anyone.
Manual labourers are more prone to acute physical injuries, whereas clerical workers are more afflicted by chronic and repetitive use injuries, like carpal tunnel and lower back injuries.
Can You Be Denied a Claim?
Even though you are paying for this kind of insurance, you might not always be able to invoke the policy if an injury or illness occurs.
The first exception is if you fail to notify your insurance company within a pre-determined time limit.
Additionally, if the injury is covered by a motoring insurance policy, you cannot ask for EL insurance. What’s more, even if the person injured is not covered by motoring insurance, and they were supposed to be, you cannot claim EL insurance.
Finally, if the injury was deliberate, or if it occurred offshore, the policy does not cover these cases.
When it comes to the USA, experts at Workers Compensation Attorney Group located at 2655 Camino Del Rio N Suite 440, San Diego, 619 798 6487 recommend hiring an attorney right away and expediting the process as these things tend to drag on for months otherwise.
