Employer liability insurance
Anyone can dream of starting own business, there are many things to keep in mind at that time. One of the most important aspects of business is the employee. In a situation where an employee is injured in the work environment, it is a tricky position for the employer. In such a crisis, employer liability insurance helps the employer. Employee liability insurance is a way of protecting the employees from work hazards; it is of help to the employer as it helps him avoid negligence and the hassles of lawsuits in event of any injury or death of the employee.
In the United Kingdom it is mandatory for all business to have an employer liability compulsory insurance. It helps the employer in terms of legal fees and compensation in the event of injury. The insurance is mandatory for all companies in England, Scotland, Wales and Northern Ireland. The companies are required to insure for a minimum of £5 million, insurance companies provide a limit of up to £10 million.
There are certain exemptions for the employee liability insurance, business which have only one employee or if the employees are close family members, and then the need for employee liability insurance does not arise. Limited companies with one employee with 50% shareholding in the share capital are exempted from ELCI.
Employee liability insurance is enforced by Health and Safety Executive, there is a fine of £2,500 in case of non compliance of insurance measures.
Health and Safety Executive is the enforcement authority of ELCI. There is a fine of £2,500 for non compliance of insurance measures. The employee to be eligible for employee liability insurance has to have income tax, national insurance deducted from his salary, the company where he works controls the place, nature and timings of his work. The employee cannot substitute anyone else for his work.
Employee liability insurance keeps everybody in check, it keeps a check on their behavior to avoid lawsuits of harassment. The insurance also ensures rules and regulations of the business are in place, which indirectly help the employee safety, the staff feels safe and protected.
Many companies in the United Kingdom provide employee liability insurance, such companies should be members of the Association of British Insurers(ABI). Of the many companies which provide employee liability insurance are Hiscox, Lloyds TSB, AXA and Brighter Business.
Of the companies offering employee liability insurance, Hiscox offers insurance cover up to £10 million as compensation and damage costs, there is also provision for legal fees charged for claim. The package comes along with Public liability insurance. The package offered by Lloyds TSB is similar to that offered by other companies. AXA offers dual package of public liability and employee liability together. The cover is available for both permanent and temporary employees with risks on tools and phones, even personal accident cover and contract works. Brighter business offers cover of £10m for office, home worker and retail policies.
Companies who take employee liability insurance will receive Certificate of ELCI, this certificate should be displayed where the employees can read. The copies should be retained for 40 years, any company which does not maintain the certificate is fined up to £1,000. The health and safety inspectors can ask for certificates at the time of inspection.
Employee liability insurance is a part of the business itself. Strict enforcement rules helps in protecting the benefits of the employees. The insurance helps in paying claims to the employee at times of injuries or work related illness. The policy of the each company differs and it is easy for anyone to select the best employee liability insurance which suits them.
Employee liability insurance the best way to save yourself from employee claims and feel content to have followed every word of the law.
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