Right Accounts provide professional taxation and accounting services at fixed prices in the UK.
Phone: 0113 323 5783
Starting your own business is tempting. However, there are many things that you have to keep in mind when you do.
For example, as soon as you become an employer, you are legally required to get Employers’ Liability insurance.
Today we’ll take a look at what this type of insurance is, why do you need to have one and how much you might have to pay in fines if you fail to comply.
Employers’ Liability insurance will help you cover the compensation amount and legal costs in case your employee gets hurt or ill at the workplace.
For example, imagine that somebody carelessly left some boxes unattended in the office. Your employee tripped over them and broke his hand. Later, he claimed a compensation for a work-related injury. You might end up paying compensation for the injury, legal costs and medical expenses!
But if you have Employers’ liability insurance these expenses will be a headache for your insurer, not you. Sounds good?
You have to acquire Employers’ Liability insurance as soon as you get your first employee. That means that one employee is already enough for you to be legally required to buy Employers’ Liability insurance.
You’ll also need to get this insurance if you employ people part-time, temporarily or have unpaid workers (e.g. interns).
Yes, you do not need this type of insurance if
However, in these cases it is important to double check with your accountant.
By the way, you also have to introduce the EL certificate to your employees. It has to be displayed in an easily accessible place in the office or online.
The price you pay will depend on a number of factors such as the type of your business, the field you operate in, how many employees you have, etc.