What is employers liability insurance?
So, you have organised your event. You've made the decision to buy your event insurance and now you are considering whether or not you need employers liability insurance.
Event public liability insurance is voluntary and is opted for by those who choose to take it to ensure their liabilities are protected or taking a policy has been enforced upon them by venues or organisers to ensure they are protected against any negligence on their part.
Employers liability insurance is different. It is compulsory and you can be fined if you are required to and do not hold an employers liability insurance certificate that complies with the law.
Most employers are required by the law to insure against liability for injury or disease to their employees arising out of their employment. Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.
The Health & Safety Executive (HSE) is responsible for enforcing the law on employers liability insurance. You can be fined up to £2,500 for each day that you do not have appropriate insurance.
Do I need employers liability insurance?
In the eyes of the law if you enlist the services of any person whether as a paid employee or unpaid volunteer or assistant you have entered into a contract of service with that person.You may need employers’ liability insurance for someone who works for you where;
You have the right to control where and when they work and how they do it;
You supply their work materials and equipment;
You have a right to any profit your workers make although you may choose to share this with them through commission, performance pay or shares in the company;
You require that person only to deliver the service and they cannot employ a substitute if they are unable to do the work;
They are treated in the same way as other employees, for example, they do the same work under the same conditions as someone else you employ; or
You deduct national insurance and income tax from the money you pay them
This list is not definitive and it is for you to satisfy yourself of the status of the persons working for you and if you have any doubts, you should seek legal advice.
There is nothing to prevent an exempt employer from choosing to buy employers liability insurance to ensure your protection and the financial security that it can provide in the event of a claim being brought against you.