Employers’ Liability Insurance Employers Liability Insurance (ELI) can be a particularly thorny issue; in fact a recent survey revealed that over 210,000 small and medium sized businesses in the UK are breaking the law by operating without ELI. That means there are around 1.8 million employees that have no cover in the workplace. If you employ anybody in your business – even if they’re part-time or casual staff – then you need ELI. The cover protects you against claims from employees for accidents or sickness caused through work. The legal minimum cover is £5 million, although the more usual limit of indemnity offered by insurers is £10 million. You should display your ELI certificate in a prominent position in the workplace as you may need to produce it on demand. There are specific types of businesses that are finding it particularly difficult to get ELI, according to a survey carried out by the British Insurance Brokers Association - scaffolders, metal fabricators, coach companies, private mines, children’s nurseries, haulage companies, consulting engineers, roofing contractors and couriers all attract high premiums. So how can you help reduce your premiums, particularly if you’re in a high-risk business? You should start off by making sure you’re sticking to all the relevant health and safety regulations. And if you have a good record on health and safety make sure you can prove this to the insurer with the correct paperwork. It’s also worth bearing in mind that insurers may refuse to pay compensation if you haven’t provided reasonable protection for your employees against injury or disease, or if you’ve done something they told you not to do, or you haven’t done something they told you to do, or if you haven’t met any legal requirement connected with the protection of your employees. |
Public and Product Liability Both Public and Product Liability insurance are voluntary for most businesses, but these policies could save you a lot of money in the long term. Public Liability Public Liability insurance covers you against any claims made against your business – for example if you were held legally liable for personal injury, or for damage done to property. The insurance will also cover you for any legal costs associated with defending claims against your business. Even if you work from home it may be that you need Public Liability insurance. If clients often visit you at your home office then this policy will cover you if they injure themselves while they’re on your premises (it could be something as daft as tripping over the carpet!). And don’t forget if you regularly work off-site your policy should apply to off-site as well as on-site jobs. The premiums will depend on the type of business, your turnover and the number of employees. The problem is working out what level of protection you think you need. The key is not to underestimate – £2 million may sound like a lot of cover, but if you find yourself facing a series of claims from a group of people the legal fees will be large. It’s also vital to keep your Public Liability policy up-to-date to reflect any changing circumstances in your business. As your business expands you’re likely to find your risks grow too. Product Liability If you manufacture or supply goods, there’s always the possibility that your product could cause damage to a third party – that could be property or another person. A small defect could open you up to massive claims, so this cover is vitally important for product manufacturers. Look for a policy that guards you against safety claims, manufacturing quality, spoilage and indemnity costs (medical bills and so on). And remember Product Liability is designed to cover you against unforeseen circumstances, if you simply make an inferior product or supply bad services then you’re not going to be able to make a claim. You can reduce your premiums by taking quality control measures beforehand, and you should make sure your insurer knows of any measures you’ve taken – it could affect your premiums. |
