Employers Liability is a UK law requirement for any business that has more than one person in the business (directors or employees), protecting your legal liability as an employer against injury, disease or death sustained by your staff in the course of their employment.
If you have employees, there is a chance that they could be injured at work or become ill as a result of working for you. If this happens they may be entitled to claim compensation from you, which is why you would need employers liability to cover the cost.
For example, if an employee is injured whilst working in a warehouse without the correct safety precautions, you will need to claim on your employers liability cover. The policy also covers claims for employee illnesses that have been contracted as a result of working for you, even if they occur after the person has left your employment. For this reason you must keep on file all documentation related to your employers liability insurance, even if it has expired.
You may find incorporating employers liability into a business policy along with public and product liability reduces the overall cost – it also makes your business insurance easier to manage.