Free Articles  >>  Business And Finance >> 

What is Employers Liability Insurance

Employersâ liability insurance is compulsory for most businesses with employees, even if you only have temporary or casual employees. An employersâ liability policy will cover compensation claims and legal expenses in the event that an employee sues the business after suffering a work-related illness or injury.

The minimum legal requirement for Employers Liability cover is £5 million, however the standard cover provided by most policies is £10 million. The cover may be taken as part of a liability insurance package (along with Public Liability) or may be included within a comprehensive âcombinedâ policy covering other aspects of the business such as buildings, contents and money.

Some business owners may be unsure as to who is classed as an employee and who is not, indeed the definitions themselves can be confusing. In the most basic terms - anyone who is under a contract of service or apprenticeship will be classed as an employee however there are other definitions that, for the purpose of the legislation, are classed as an employee such as;

A voluntary (unpaid) helper
A trainee or person undergoing work experience
A self-employed person working under a similar degree of control and direction as a person under contract of service
Any person employed by someone else who is borrowed by or hired to you
Labour only sub-contractors

There are some exceptions to the requirement such as those businesses that only employ close family members (if the business is a limited company the exemption will not apply) or businesses that only use bona-fide sub-contractors.

Even if you are exempt from the legislation, it is still a good idea to obtain Employers Liability cover due to the high settlements involved in many compensation claims.

Since 2011 there has been a central database providing details of employerâs liability insurance information named ELTO (Employers Liability Tracing Office). The purpose of the database is to ensure that claims can be made quickly and to the correct insurer covering the period that the illness or injury occurred in. Some illnesses may not present themselves until many years after the employee has stopped working for the company (for example deafness claims relating to heavy machinery use)

Your insurer or broker will now ask you for your ERN (Employers Reference Number) when you incept an Employers Liability policy. This is the number used to register your policy on the ELTO database. The ERN is the reference used when you submit payments to HMRC for your employeesâ tax and national insurance payments and is also known as the employers PAYE reference. If you do not know this, your accountant or person responsible for payroll will be able to locate it for you.

If you are at all unsure as to whether you are required to have Employers Liability cover then refer to the government legislation or speak to your broker.

About Author Lifestyle Insurance :

We are a leading commercial fleet insurance Stockport UK. We supply the best motor trade car insurance policies from an extensive panel of insurance companies and at cheapest rates. For cheapest motor trade insurance Stockport UK, Call us at 01616413229 or more information please visit our website <a href="" target="_blank"></a>.

Article Source:
Article Url:

Article Added on Saturday, June 20, 2020
Other Articles by Lifestyle Insurance

What Will I Need For a Public Liability Quote
This may seem like an easy question to answer, but in reality, this couldn’t be further from the truth, for one main reason. All insurance companies ask for different information. There is no need to worry, however, there is hope. Whilst all insurance companies ask for different information, there are some core questions asked by most of them. So here is a list of information you may need to provide in order to receive a public liability quote: Name: This will depend if you are a...

Finding the Cheapest Motor Trade Insurance
The Holy Grail when looking for motor trade insurance is getting a cheap quote, and this is a lot easier to achieve than you might think, and it doesn’t require shopping around 10 different brokers and wasting hours of your time repeating the same details over and over again. So, how do I get myself a piece of this Holy Grail? Well, you really need to start evaluating your business, if you want all the bells and whistles on your motor trade policy, this is fine, but it’s not going to...

Publishers / Webmasters
Article ID: 495230
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

219 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Linux Wordpress Hosting Provided By AwareIndia

Company IDS