Do I need employers’ liability insurance for temporary workers?
Whether you’re a new business or an established name in the construction industry with many years of experience under your belt, it always helps to know the ins and outs when it comes to your business insurance and employers liability insurance. There are a selection of quality advice and insurance policies available on the market, designed to equip your business with the most cost-effective and relevant insurance policies in line with your needs, while also protecting your business against any claims made against you by employees or third parties. But what about those temporary employees, where do they come into it?
What is employers liability insurance?
Employers’ liability insurance is a type of business insurance designed to give you legal protection in the event of an employee making a claim against your business. Liability insurance will cover your business for any compensation packages that are required to be paid to the employee as well as any sick or medical pay and legal fees. Unlike public liability insurance, employers’ liability insurance is a legal requirement in the UK, and failure to possess this form of insurance could mean that you’re forced to pay up to £2500 for each day you’re without the insurance.
The benefits of possessing employers liability insurance certainly outweigh the initial costs and potential fines of going without. Let’s consider that a number of your employees are injured and make a claim. The potential pay outs you experience could put your business under great financial strain and potentially insolvency.
Do I need employers liability insurance for temporary workers?
Many employees assume that because certain employees are only considered to be temporary, that they’re therefore not required to purchase employers liability insurance. The fact of the matter rests on whether your temporary employees are hired on a temporary contractual basis or if they are in fact bona fide sub-contractors. A general rule of thumb is to purchase employers’ liability insurance if you have at least one employee – this way you will be covered across all costs and claims made against you whether it’s from a temporary employee or even a sub-contractor.
Additionally, it’s also a good idea to have a conversation with sub-contractors prior to the completion of the service as a means to iron out the insurance situation. Many sub-contractors may already possess their own public liability insurance but it’s worth double checking just to be sure.
Employers’ liability insurance is a vital component to any operational business looking to work safely and within the confines of the law. As mentioned above, employers’ liability insurance is a legal requirement in the UK so it must be purchased if you have your own employees. Although not a legal requirement, public liability insurance is also worth purchasing to protect you from any third party claims made against the business. Insurance specialists like Tradesman Saver provide employers’ liability, and other cover for tradespeople and trade businesses throughout the UK.