An Employer may be liable for an injury to an employee. Employers Liability insurance covers the Employers legal liability for any subsequent Damages.
Insurers base their premium on a number of factors however initially they will consider the description of your business and what you do. It is important that the information you give them incorporates all your activities, both at your premises and away from your premises. Otherwise Insurers will not settle any claims for activities outside this definition.
Employers Liability is compulsory in the UK however in spite of some requests to the Government to implement compulsory cover here, it has not been successful.
Generally Insurers apply a standard Limit of Indemnity (cover level) of € 13,000,000 any one claim to all policies regardless of the size or nature of the business but it is possible to obtain higher level of cover if necessary.
When Insurers are calculating the premium to be charged they apply a rate on employee’s wages. It is important to split your employee’s into categories if possible as the rates vary. For example the rate for a Clerical employee would be lower than for a Manual employee.
What is an employee?
Simply put, an employee is any person who is under a contract of service or apprenticeship with your business. This may be extended to include work experience, hired persons or personnel on secondment.
Employers Liability insurance does not cover issues like sexual harassment, bullying, discrimination or other similar employment related issues. This is properly insured under an Employment Practice Liability (EPL) policy.