Employees are often at risk of hurting themselves in accidents at work.  Thanks to employers’ liability insurance, employees do not have to worry about paying for damages that occur due to the negligence or harm of their employer.  Also known as EL insurance, employers’ liability insurance helps a business pay for legal costs and damages that are the employer’s fault.  Additionally, employers’ liability insurance pays for hospital treatment for employees that are hurt on the job.

Businesses have a legal obligation to carry EL insurance.  They must carry EL insurance, and the business must be insured for a minimum of £5 million.  However, this number is on the low end; the majority of EL insurance providers provide at least £10 million in coverage for employees located in the whole of the United Kingdom.

There are some exceptions to the requirement for EL insurance.  When a business is not a limited company, it may not have to carry EL insurance.  That business does not have to carry EL insurance if there is only one employee or if the employees are close family members.  Even if companies that fall into this group do not have to have EL insurance, many still choose to have it.

Since businesses are legally required to carry EL insurance, there are consequences for not having EL insurance.  A business is liable for fines of up to £2,500 per day for each day that EL insurance is not provided.  Therefore, it is very important for business owners to set up EL insurance in a timely manner.