Employers can be fined up to £2,500 for every day that they do not have proper Employers’ Liability insurance.
Employers can also be fined up to £1,000 if they do not adequately display their insurance certificate in the workplace.
This legislation applies to all businesses except those who employ only family members including:-
- Spouse or civil partner
- Parents & grandparents
- Siblings & half-siblings
- Children & grandchildren
- Step-parents & step-children
Employees who are not ordinarily resident in the UK are also normally exempt.
Any insurance policy must be purchased from an authorised insurer and the minimum level of cover is £5 million (per the Employers’ Liability (Compulsory Insurance) Act 1969).
Employers’ liability insurance provides cover for businesses in the event of accidents in the work place and any officer of a business who consensually, or neglectfully, fails to put an appropriate policy in place may be proceeded against personally.
So, such cover not only makes sound business sense, but ensures you are not breaking the law!
If you’re unsure about your responsibilities, or if you’d like assistance in selecting an authorised broker to arrange your policy, then please do not hesitate to contact your relationship partner at Ryecroft Glenton.