If your business employs any staff members who are not family, you legally need employers' liability insurance.
It covers compensation to employees for illness, death or injury, caused by their work for you. It also covers associated legal costs, like solicitor's fees. You need it if you employ:
Permanent and temporary paid staff
Contracted, casual or seasonal staff
Work experience placements
You need a minimum of £5 million cover, but most policies include £10 million. You can also get business insurance that includes employers' liability and other types of cover.
How to get the right cover
Get quotes for employers' liability insurance. You can then compare options to find the cover you need at the cheapest price.
Check the maximum cover options, as you may need a higher limit of cover if your employees are involved in high risk activities. For example, scaffolding or roofing work.
If you are unsure what cover you need, speak to a broker who can advise you.
It stands for Employer Reference Number, and is used by insurers to trace old employers' liability policies. You have to give this to your insurer when you take out cover. It can be found on your HMRC employer's welcome pack, or on copies of employees' P45 and P60 documents.