Buyer's Guide: Steer clear of dire straits with employer's liability insurance
Being an employer is a double-edged sword. Inasmuch as it is about reaping the profits of good work, just as much it is about responsibility for poor performance or, God forbid, lawsuits and accidents. You can relieve the stress over the latter mishaps by insuring yourself. Coupled with the fact that employer's liability insurance is mandatory in the UK (or else you risk being fined up to £2500), you definitely need to search for one.
Here you will find tids and bits on what to watch to ensure you get full cover for the lowest price.
Know the legal requirements
Your research can start with the legal requirements. You should be aware that, although not advisable, you can opt out of this type insurance if you are a sole trader, partnership or a limited liability company with its director holding 50% of the shares and have no subcontractors or people on the payroll. By law, the minimum cover you can get is £5 million yet generally insurers' offers will hover around the £10 million mark.
Calculate the risk
If the nature of your business is fraught with risks of injury and related claims by your employees and subcontractors and if your record of recent years testifies to that, then you should right away embrace the principle "more for more." Get to the highest limit of indemnity possible, no matter the cost of the insurance policy. In this way, you will have the necessary funds for legal fees, for employee compensation should the court rules against you and even appeals of a judgment. Bear in mind that compensation claims in case of accident during work are very high and are not covered by general liability insurance.
Shortcuts to search
The good news is that there are quite a few online resources which can help you compare the offerings of dozens of insurers at a time. You could start with Confused. After asking you to fill in a form with your personal and business details, for a reasonable commission they will shortlist for you three to five insurers which they deem most appropriate for you. Not least, they claim, the competitive manner in which they collect quotes from their insurers guarantees you up to 35% in savings on your insurance.
If your business is small or medium, then you might wish to Towergate Insurance. The SMB insurance specialists can not only pick the right coverage for you but can also bundle your employer's liability insurance with yet another must – the public liability insurance. Thus, for half the time you can boldly face any health and safety executive knocking at your door.
If for reasons of your own you wish to bet on an independent insurance broker or choose from a broad range of quotes, then the professionals of BJP Insurance Brokers are the ones you are looking for. At BJP Insurance Brokers, they will do the job for or along with you, depending on how involved you wish to be in the process.
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