3 Key Benefits of Taking Out Employer’s Liability Insurance

3 Key Benefits of Taking Out Employer’s Liability Insurance 

While tighter regulations have helped improve health and safety in the U.K. construction industry, the fact remains that builders are inherently subjected to a fair amount of risk. As such, it’s critical that those involved in the sector invest in the right construction insurance policies so that they’re covered in the event that something goes wrong. 

One of the most important types of cover is employers’ liability insurance. This is typically a legal requirement for many businesses in the U.K. and can help protect both your employees and you as their employer. In 2015 alone, liability insurers in the U.K. paid out £2.9 million every single day for employers’ liability, according to figures collated by the Association of British Insurers. 

Still on the fence about whether you need employers’ liability insurance? Here are three key reasons to take out this type of policy: 

1. Provide Employees With Greater Certainty 

The first and most important advantage of investing in employers’ liability insurance is that it provides your workers with a higher sense of security. While taking a proactive approach to safety can help minimise the risks associated with the construction sector, it goes without saying that accidents can still happen. If something goes wrong, employers’ liability insurance covers any relevant costs that your employees may face, providing them with financial security and peace of mind during a difficult time. 

2. Fulfil Your Legal Obligations 

Looking beyond the safety factor, taking out employers’ liability insurance ensures you’re satisfying all your legal obligations as set out by law. Legally, most businesses in the U.K. that have employees (even just one!) are obligated to have employers’ liability insurance. Failure to do so could result in you facing huge fines that could impact your financial security and affect day to day operations. If your business trades as a Limited Company and employs anyone, there’s a very good chance you legally need to have employers’ liability insurance. 

3. Protect the Financial Security of Your Company 

Last, but by no means least, investing in employers’ liability insurance is critical for the financial security of your company. Although you may think it’s unlikely that something could ever happen in your workplace, in reality the hazardous nature of construction sites means that employers can often be held liable for accidents involving employees. Employers’ liability insurance can pay for the costs of any claims made against you and may also cover any legal or medical expenses associated with the accident. These costs can easily exceed tens of thousands of pounds which - if you’re not covered - would probably have a noticeable impact on your bottom line and ability to operate as a small business. 

As you can see, employers’ liability is one of the most important types of construction insurance policies and should not be neglected. If you’re in the market for employer’s liability or any other type of builders’ insurance, give the OnSite Insurance team a call today on 01902 324 194.