What are your insurance obligations?

What are your insurance obligations?

Differences. Employers’ liability insurance will enable you to meet the cost of compensation for your employees’ injuries or illnesses whether they are caused on or off site. However, any injuries and illnesses relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.

Public liability insurance covers you for claims made against you by members of the public or other businesses, but not for claims by employees.

Legal requirement. Whilst public liability insurance is generally voluntary (but good to have), employers’ liability insurance is compulsory. You can be fined if you don’t hold a current employers’ liability insurance policy which covers your business for a minimum of £5 million.

Tip. Liaison with your insurer with sufficient information about a potential claim is considered good protocol by the industry and will reflect positively in your next premium review, possibly saving you money.

Make sure you have the correct insurance in place to cover your business in the event of an incident, e.g. employers’ liability (which is a legal requirement) and public liability depending on your activities.