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What is Employers' Liability Insurance

13 Jan 2022, 00:24 GMT+10

Employers should have insurance cover which will pay out if employees become ill, are injured or killed when at work and the employer is found to be at fault. Employer's liability insurance is largely compulsory in most industrial nations along with third party insurance for motor vehicles. Hence, it is common and popular among employers.

What are the Benefits of Employers' Liability Insurance

Employers' liability insurance will pay employees or their families in the event of injury or death when at work. Without this type of insurance policy in place employers could face hefty claims from workers. Accidents at work are surprisingly frequent and can never be completely avoidable.

How to Find & Arrange Employers' Insurance

Employers' insurance All You Need to Know About Employers' Liability Insurance is usually arranged at the same time as the public liability insurance for the business. A person running a small enterprise may request business insurance and not even realize that it could incorporate typically two, three or even four different types of insurance:

  • Employers' Insurance, sometimes called employee insurance;
  • Public Liability Insurance, covers clients as well as the general public;
  • Buildings insurance or insurance for property, tools, plant
  • Motor vehicle insurance for vans, cars, etc.

How Much Will Employers' Insurance Cost

The cost of any insurance is determined by the insurance companies and is related to the perceived risk and the experience of claims, the cost will be based on the number of employees. In the UK the insurance held must be for a minimum of Pound 5 million but Pound 10 is common.

In the construction industry, for example, insurance for people who work on roof tops or scaffolding is higher than for carpet fitters or painters. The risks facing office based workers who do not visit members of the public are quite low.

A record of the employers' liability insurance must be retained for 40 years in the UK.

Employers' Liability Insurance for Temporary Workers

All staff in businesses including online casino must be covered and an exact number will be written in the insurance documents, but insurance companies offer very different types of policies. If the number of employees changes frequently through the year it is worth contacting a number of different companies and discussing the situation with them. Some employer's insurance policies require an exact number for permanent employees but will also include insurance cover for a larger number of temporary workers.

Employers' Liability Insurance for Temporary Workers

If the business has contracts with sub-contractors then the insurance liability must be clarified. Generally, if the subcontractor is a genuinely self-employed and required to hold public liability insurance for the work that they do then they will not need to be covered by the main contractor's insurance. The employer, or contractor, may need to hold a copy of the subcontractor's insurance documents.

Things to Know About Employee Insurance

Insurance to cover employees is called Employer's Public Liability Insurance in the UK and Workers Compensation insurance in Canada. It is mandatory and in the UK records must be retained for 40 years.

Any employer will need to take out insurance to cover employees, even temporary and part-time employees. Self-employed sub-contractors do not have to be covered by the policy.

Home-Based Business Insurance

Why does home-based business insurance matter? In the abstract, self employment sounds fantastic. Being the boss, working your own hours, doing a job that you love - that is the American Dream. No one wants to work under someone for the rest of their life, take orders from someone else, or go every day into a job that they hate. Without the proper insurance, that self employment dream can become nightmarish. Find out what work at home professionals should know before starting a business.

What Work at Home Professionals Should Know

Self-employment seems like the perfect answer. Wouldn't it be great to chuck it all and go into business while working at home? The thing about being the boss, though, is that suddenly there are a lot of responsibilities.

Even in self-employment, there's a whole lot more to think about than just making money. Sure, you can turn a profit - but can you cover the overhead of running a home-based business? In self-employment, running a home-based business is going to be less costly than running a huge corporation, but there are still many financial problems to consider.

Home-Based Business Insurance

Insuring that home-based business has to be a concern even in self-employment and working at home. Business insurance is something to consider even if in work at home through self-employment, because sometimes homeowner's insurance will not cover everything in the home office. Take a closer look at the homeowner's insurance policy, because a secondary business insurance policy may be needed even when you're self-employed and working from home. If you are working outside the home, you absolutely must have a business insurance policy. If you aren't insuring your business, you're taking an unnecessary risk.

Even if you're self employed and your only employee is yourself, business insurance is in order. This will protect equipment and income. If something unforeseen happens and you cannot get to your office when needed, business insurance can provide you with much-needed compensation.

Insuring your business is a step you must take, but it doesn't have to be an expensive one. Contact companies you have existing policies with, because you can often get a discount for opening a second policy and that will help the business budget greatly. An independent agent can often find the best possible deals for insuring a home-based business, and will do all the work so that you don't have to call around and compare business insurance quotes.


Insurance is one of the main segments in any business, either small or big. Insurance keeps the risk covered. It helps in smooth functioning of a business without worrying about the consequences of unforeseen circumstances. Insurance premium may be painful due to increase in the overhead expenses, but it is the best companion during the time of disaster.

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