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.
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