What is employer’s liability insurance?

Employer’s liability insurance is one of the few business insurance policies which absolutely every business are required to subscribe by law, at least as soon as they hire employees.

Employer’s liability insurance covers medical costs related to any injury or bodily harm which can be caused to any employee normally performing his professional duties in the company. Employers liability insurance may also cover all legal costs and compensations claimed by the employees, following such an accident which caused the employee to be physically hurt while doing his or her normal professional duties.

Because it is a legal requirement in the United Kingdom for any company hiring staff, even just one person, to subscribe such an insurance, employer’s liability insurance is often an essential part of many business insurance packages like:

- pub insurance,

- restaurant insurance,

- small hotel insurance.

- shop insurance;

- tradesman insurance,

- takeaway shops insurance.

But because companies in the United Kingdom are required by law to subscribe such an insurance, it is also extremely easy to find a provider.

However, because medical costs or the amount of claims related to such serious matters as physical harm can be extremely high, many insurance providers will not provide any employer’s liability insurance policy covering amounts inferior to £1,000,000. In some cases, this kind of insurance can cover tens of millions of pounds worth of damages, costs or claims, with matching premiums.