Employers Liability Insurance

jaype

Hi - we have our own business and are about to take on our first employee this summer. However, I have just been told we need employers' liability insurance. Can anyone recommend a good place to search costs on this / compare policies? It's for a software comoany, and the person would just be doing sales and marketing. Thanks in advance...

*MF*

By law you must have Employers Liability insurance with a limit of indemnity of at least £5 million, most policies provide £10 million. There are hefty daily fines if you don't have the cover for employees. You will be given an annual Certificate of EL Insurance which has to be displayed at your premises.

Because it is a form of legally compulsory insurance, and with few exclusions allowed to be imposed - you will not find a great difference between Insurers on the cover, and because of the type of work involved (low risk) there may not be a large difference in cost either - except ...

Insurers often charge minimum premiums, and my guess is that you will face that type of minimum cost for an EL policy for one employess doing sales and marketing ... so

Just as a house insurance policy is packaged to cover more than one type of risk, so are business policies also packaged - with EL always being included - because it is legally required.

So, assuming at the very very least - that you have equipment in your business, were I you, I would shop around for a Business package policy including EL, but also including damage to any equipment, loss of profits, public liability and so on - and hey, if you already have that type of policy in force - check it, you may find you already have the EL cover.

Hope this helped.

jaype

Cheers MF - but any ideas where to start the shopping? Do they have an equivalent of moneysupermarket or something for this?

*MF*

jaype wrote: »

Cheers MF - but any ideas where to start the shopping? Do they have an equivalent of moneysupermarket or something for this?

don't know the answer to that, but two links below would get you started, one direct with an insurer, the other via a broker.

http://www.directlineforbusiness.co.uk/

http://www.commercialservices.aon.co.uk/commercialservices/general-small-business.aspx

jaype

Brilliant - you are a lifesaver... Shame I can't press thank you twice.