Though most of us would prefer not to think about it, accidents, injuries, and illnesses in the workplace are very unpleasant reality. Failing to manage risks and properly train your employees can lead to dastardly consequences, and being caught uninsured may literally cost you your business. Make sure you’re prepared for the worst case scenario by using the tips below.
Employer’s Liability Insurance: Who Needs It?
Under the Employer’s Liability (Compulsory Insurance) Act 1969, all employers—even small businesses—are required to provide cover for their employees, with two noteworthy exceptions: limited companies where the owner is the sole employee and unincorporated family businesses where all the employees are closely related. The reason for this is because in the unfortunate event that an employee suffers a work-related illness or accident, he or she may be entitled to claim work accident compensation. The cover helps ensure that the employee is paid the proper compensation.
How Employer’s Liability Insurance Protects You
While the initial investment in employer’s liability insurance may seem like a financial burden, in the long run, it protects you from assuming responsibility for a large work accident compensation settlement. With some lump sum settlements totaling in the millions these days—and additional maintenance payments owed each year—one serious on-the-job accident or illness could ultimately bankrupt your company.
There’s another way that having Employer’s Liability Insurance protects you: being caught without cover by the HSE could lead to hefty fines. The fine for not having proper insurance can be up to £2500 a day, plus there could be an additional fine of £1000 for not having a certificate of insurance displayed in your workplace. That’s no small chunk of change for a small business, so make sure you get insured right away.
How much cover is needed?
By law, all employers are required to have a policy that provides cover up to £5 million, but the more common level of coverage is £10 million. That doesn’t mean the cover has to cost your business a fortune, though. Many annual premiums start around £30-£40. Compare rates on a site like Money.co.uk to make sure you’re getting the most competitive premiums for the level of coverage you need.
Final word: A note about managing risks in the workplace
Accidents can happen at any time, but the best way to keep them at bay is to assess and manage risks before they become a problem. Identify potential hazards like harmful chemicals, falls from extreme heights, slips and trips, electrical hazards, and dangerous equipment, among other things. Once you’ve got a list, brainstorm ways to remove the risks altogether; for those that cannot be removed, write them into a company health and safety policy that your employees can refer to when they’re on the job. Your health and safety policy should be supplemented by some basic health and safety training to prepare your employees for emergencies and other potentially dangerous situations.