FAQ on employer's liability insurance

Q: What is Employers Liability Insurance and what does it cover?
A: Employers Liability Insurance is insurance against illness or injury to your workers.  As an employer you are responsible for the Health and Safety of your employees whilst they are at work.  If an employee is injured in an accident at work or becomes ill as a result of their work they may seek compensation from you. Employers Liability Insurance enables you to pay out this compensation.

Q: Why do I need it and who enforces the system?
A: It is compulsory for an employer to take out Employers Liability Insurance for at least £5 million. The Health & Safety Executive is responsible for enforcing the law and can fine you up to £2,500 for each day that you do not have appropriate insurance in place.

Q: What else should I be aware of?
A: When you take out the policy you will receive a certificate of insurance. You must display a copy of this where the employee can easily read it. You must also keep copies for at least 40 years or risk a fine of £1,000. You need to make these certificates available to Health and Safety Inspectors on request.