Small Business Liability Insurance

Getting Yourself Covered As An Employer

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Small business liability insurance is needed if you will be employing any staff.  

The correct term for it is employer liability insurance (EL).  

This insurance is compulsory - by law you have to have this EL if you have employees.

It doesn't matter what size business you are or how many employees you have, you must have EL.

What Exactly Is Employers Liability (EL)?

Say you have some employees and one of them gets injured on the job.  It was then proved that you as the employer acted negligently and that the injury could have been prevented.

The employee concerned then decide to pursue you for compensation. Your liability insurance would pay the cost of the claim.

However, you will not be covered by EL if an employee decided to sue you against sexual discrimination or wrongful discrimination.

What Would Happen If I Didn't Have EL Insurance?

The law says that if you have employees, even if only one, then you must have liability insurance.  If you don't take this policy out, then you would be leaving yourself open to employees claiming compensation against you. You would then have to pay the compensation out of your own pocket.

You would also be in trouble for not having this policy in the first place.  The health & safety executives would be quite in their rights to close down your business permanently.

Please note that EL insurance is different to Public Liability Insurance.



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