Quantcast
Channel: » Business Insurance
Viewing all articles
Browse latest Browse all 2

Know your legal obligations for business insurance

0
0

Small businesses in the UK who employ staff are required to have Employer’s Liability Insurance, which is mandatory according to law. This insurance pays out compensation to employees who may have been injured at the workplace or whilst carrying out a work-related duty. The minimum cover an employer should have is £5m. It also covers payments made to former employees who may have developed any illness as a result of working activities.

A recent survey carried out by an online provider www.yourinsurance.co.uk has found that 47% of people involved in the study were unaware that it is illegal to employ staff without such cover. The insurance is a legal requirement whether an employer has one staff or many. Family members, and in businesses where the owner is the sole employee, owning at least 50% of the company however do not require such cover.

YOUR insurance has warned that almost a half of the UKs small businesses could in fact be employing staff without the insurance cover. In 2011, insurers paid out £1bn in Employers Liability claims and other similar expenses.

1

In March the Health & Safety Executive reported an incident where a self-employed maintenance worker was fined £1,250 and was ordered to pay £1000 after a friend assisting him broke an elbow after falling three metres through the roof of a disused factory.

“It’s concerning to see how many people appear unaware of their legal obligations”, said Anne Plaskett, YOUR insurance marketing manager.  “Anyone employing full or part-time staff, sub-contractors, work experience students or volunteers should have this compulsory cover in place. Without it, the financial consequences could be severe,” she added.

Since October last year the Health & Safety Executive introduced a scheme whereby anyone found to be breaking health and safety regulations will be liable for recovery of the expenses of the HSE, such as inspection, investigation and enforcement costs. The fee for intervention was brought into force in order to ensure health and safety regulations are met within the workplace. Any breach now will be dealt with serious consequences as a result of the new scheme.


Viewing all articles
Browse latest Browse all 2

Latest Images

Trending Articles





Latest Images