The Importance of Employers Liability
As a sports business with employees you may think it's unlikely that a member of staff would ever look to make a compensation claim against your business. However, this could happen should they suffer serious injury or illness at work and feel that you, as an employer, have acted negligently.
Employers Liability insurance enables businesses to meet the costs of damages and legal fees for employees who are injured or ill at work. As a result it is a legal obligation for businesses in the UK who employ staff to have employer's liability insurance to provide cover against a claim by an employee.
Volunteers & Seasonal workers
There is a misconception that if a business uses volunteers or seasonal workers only then they are not required to cover themselves with employee's liability. This is certainly not the case as these types of employees are as likely to make a claim against the business as paid a full time member of staff. Therefore you will require employer's liability to protect your business against claims made by volunteers or seasonal workers.
Self Employed workers
Whether or not your business needs employer's liability for protection against claims made by self employed person really depends on the nature of your relationship and the amount of control you have over their work.
Examples of when you will be required to have employer's liability to cover self employed workers
• Whether you make national insurance and income tax contributions
• Whether your business generates profit from their work (excluding bonuses & commission)
• Whether you have the same control over their place and nature of work as you would a normal employee.
• Whether you provide their materials and equipment
• Whether they have similar workload and conditions as one of your own employees
• If they are sub-contractors without their own insurance
Examples of when employer's liability will not be required
• If they are not on PAYE and you are invoicing them for the work they do
• If they are sub-contractors with their own insurance of at least £2m Public liability
• If they are family members. This includes: husband, wife, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half brother or half-sister
• Sole traders and partnerships where their owners/employees owns at least 50% of the trading company
If you are in any doubt as to whether you require employer's liability for your business then it's important that you speak with one of our specialist advisors on 0845 120 6410. Failure to get the correct insurance could leave you exposed to costly claims.
If you would like us to quote your business please complete our online proposal forms and we will get a quote back to your within 24 hours.
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