Your employer must have employers’ liability insurance. If you make a work accident claim, the insurance policy will cover the cost of your compensation award.
If you want to make a work accident claim, please contact us at Ashmans Solicitors. Our solicitors recover compensation for injured employees across England and Wales. We have offices in London, Leeds, Sheffield, Huddersfield and Dewsbury. We are available to take your call 24 hours a day, seven days a week.
What is the employers liability insurance?
Employers’ liability insurance is a type of insurance policy that employers in the UK must have in place. It covers an employer’s costs, in the event that an employee or former employee makes a claim for a work-related injury or illness. This ensures that employees have access to compensation for their damages, but that employers do not have to pay out of their own pocket.
What does employers liability insurance cover?
Employers must have a minimum insurance policy of £5 million per claim, although this can be as high as £10 million per claim. If an employee’s work accident claim is successful, the employers’ liability insurance will cover the cost of the compensation settlement, along with the employer’s legal fees. This enables access to justice, even in the most serious of cases.
Who needs to have employers liability insurance?
Every employer in the UK must have employers’ liability insurance, with the following exceptions:
- Public service employers
- Family firms in which everyone is related (unless the business is a limited company)
- Businesses that only employ the owner or a single employee abroad
An employer must also display their certificate of insurance somewhere that employees can see it. The policy must be purchased by an insurer who is authorised by the Financial Conduct Authority (FCA).
What are the consequences of not having employers liability insurance?
If an employer fails to purchase employers’ liability insurance of at least £5 million, they can be fined up to £2,500 a day. Failing to display a certificate of insurance can also result in a £1,000 fine. If an employee does suffer a workplace accident and the employer does not have employers’ liability insurance, they may be personally liable for the cost.
Claiming work accident compensation via employers liability insurance
So long as your employer has complied with the law, your work accident claim will be handled by your employer’s insurance company. Your solicitor will liaise directly with the insurer, rather than your employer. This includes exchanging evidence and negotiating the terms of your settlement. This will be a relief to any employees who feel uncomfortable about pursuing legal action against their employer (or former employer).
Will my employer have to pay my compensation?
The purpose of employers’ liability insurance is that your employer does NOT have to pay your compensation when you make a work accident claim. The insurer will cover the cost – not your employer. The only exception is if the insurer deems that your employer has been seriously negligent. If so, the insurer may seek to reclaim the cost of compensation from your employer.
Concerned about making a work accident claim?
Many injured employees fear that their employer will be personally responsible for paying their compensation settlement. This concern deters many employees from making a claim. They have a sense of loyalty to their employer and the company and do not want to cause any harm.
However, this need not be a worry. Your employer is legally obliged to have employers’ liability insurance in place, and this policy will cover the cost of your compensation settlement. The money is not paid from the company’s profits or from your employer’s assets.
In fact, your employer will have very little to do with the claim. Your personal injury lawyer will work out the details with your employer’s insurer. The insurer will investigate the accident and deal with the legalities.
Another common concern is that you will be fired or treated less favourably for making a work accident claim. However, this is not permitted under employment law. You cannot be let go or harassed at work for exercising your right to claim compensation. If you are, you could have grounds for an employment claim too.
If you have any other concerns about making a claim, we recommend speaking to our solicitors. We offer free legal advice during an initial consultation. This gives you the chance to discuss your worries with a solicitor, completely free of charge.
Call us now on 0333 009 6275. We are available 24 hours a day, 7 days a week.