Archive for the ‘employers liability insurance’ Category

Employers liability insurance – cover for work placements.

Tuesday, July 13th, 2010

Anyone in business will know, that if you employ people, you need to have adequate employers liability insurance in force. When we say adequate, it has to be for a minimum limit of indemnity of £5,000,000 any one loss and the cover has to be provided by an insurer approved to trade in the UK.

This cover has been formed over many years, and can trace it’s roots back to the Employers Liability Act (1968). The legislation states that anyone, and we repeat anyone, who works for a business must be covered under the EL section of the business insurance policy.

It is immaterial whether they are paid, volunteers, directors on dividends or even family and friends helping out. If they are injured, and you or the business have been negligent, you may face a claim.

But what happens when you have a school age child on a work placement? The old YTS scheme has been replaced by a myriad of different arrangements and most school children around the age of 15, will be offered some sort of one or two week placement with a local firm.

Within your policy wording, it will state exactly what an employee is. There will be a paragraph that contains all of the different types of employee. If you are taking on a placement, the local authority or maybe the school, will ask that you prove cover.

You have a couple of choices here, either speak to your broker to get them to send a proof of cover letter, or you can copy the relevant parts of your policy wording and/or schedule, which shows that these children are covered.

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Getting an online business insurance quote

Wednesday, June 23rd, 2010

If you’re just about to start your own business, or have been trading for a while, one of the many questions you must ask yourself is, do I have the right policy in place?

Business insurance is very important, for two reasons.

Firstly, there are certain types of cover, such as employers liability insurance, that you must have by law. Whilst we sometimes moan in the UK about too much bureaucracy and too many laws, the vast majority are there for a reason. EL cover is laid down in statute to ensure that if employees are injured, and cannot work, that they are fairly recompensed if their employer can be proven negligent.

Secondly, your business, in most cases, is your livelihood. If you do not look after it, then you can find yourself in a sticky situation. You will of course do all you can, day in, day out, to make your business safe and to aim for the Holy Grail of profitable growth.

But, there are some things that you cannot legislate for and cannot protect yourself from. A hurricane storm that destroys your building, or a fire in a neighbouring property that spreads to yours, is nothing that you can control.

For these type of events, you need to have business insurance in place. It may not be a legal requirement, but it is a sensible and prudent step to take.

We have seen the Conservative and Liberal Democrat coalition emergency budget and whilst there is a lot of pain to come, at its core is to increase the entrepreneurial spirit in the UK.

Hopefully, over the coming years more and more businesses will be formed and will prosper. All of them need to have a policy in place that protects them against the unexpected, unplanned and uncontrollable events.

To get yourself a quote, the first and only step you should take is to speak to an independent professional, a business insurance broker. You do not have to see them, a telephone call or contact and correspondence online is sufficient. But make sure that they are able to obtain quotes from more than one insurer, otherwise how do you know you are getting a good deal?

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Business insurance – what cover do I need?

Saturday, June 19th, 2010

What may seem like a simple question, can become very confusing if you spend a bit of time looking on the internet and reading up on the subject.

There are very few, legally required, forms of business insurance in the UK. The main one that every owner is aware of is employers liability insurance. In addition there is third party motor cover and, if you have hydraulic or lifting plant, you need to have engineering inspection cover, which is a form of insurance.

One sure fire way of finding out exactly what cover you need, is to speak to an expert. What we mean is actually discuss this, either face to face, or over the phone with an independent business insurance broker. What you should not do, is fill in forms and receive quotes from a quote site. Whilst you may get a good price and what looks like good cover, you are not receiving any advice regarding what your real demands, needs, wants or requirements are.

We cannot stress enough, that just taking the time out to have a chat with someone who has access to a range of insurers, is time worth spending. The bonus is, that this process is free. Most brokers are quite happy to discuss, help and advise for free, you never, every have to pay for the quote.

It may be that your current cover is insufficient or the way that it has been arranged is far too complex or is based on too many separate policies. Insurers are changing and refining their wordings all the time. Whilst you may have had to have two or three separate policies a few years ago, in 2010 it may be that a new or existing underwriter has a better, more competitive product that encompasses all of your requirements.

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Shop insurance – wedding dresses and alteration cover

Saturday, May 15th, 2010

Look around any high street in the country and you will find that there is a wedding dress shop. Gone are the days when you were so restricted and had to travel miles for your dress fitting.

If you are the owner of one of these business then you will have shop insurance in place to cover your stock, contents and liabilities. Many of these shops are basic retail only, with the manufacture and alteration being undertaken by third parties or the dress suppliers.

However, more and more of these business are now realising that not only should you do the dress, clothing and accessory retail but you should also do the alterations on site.

If you do this then it is something that you need to notify to your commercial insurance company because there are increased risks. The two main risks that are increased are public liability and employers liability.

Public liability is increased if for example during the alteration process you manage to injure the potential bride. You may think this is unlikely, but in our increasing litigious country, anything is possible.

The main increased liability risk is to your employees. There is much more chance of an injury to someone using a sewing machine, scissor and other alteration equipment than someone who is undertaking a purely retail role. Again, we are not saying it is a huge risk, but as ever the potential in there.

You need to ensure that your policy specifically notes that you undertake alterations directly, otherwise they could turn around and decline the claim.

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Restaurant insurance – EL is vital

Thursday, April 22nd, 2010

You have two choices when purchasing restaurant insurance, you either get a packaged policy or you get a bespoke policy inlcuding the sections of cover you specifically require.

Nine times out of ten, you will find that if you deal through a business insurance broker, you will be sold an off the shelf, package policy. This is the simplest, most economic way of arranging the cover.

However, in certain cases your broker may decide that the best way for you to cover, or protect, your business, is to have a special policy built just for your needs. For example, if you have restaurant, with a shop and guest house, then this is not usually suitable for the package concept. You will need to have what is called a commercial combined insurance policy. Your broker will declare all the business activities that you undertake. The policy will have a section for the business description to be declared. 

The insurer will include certain sections of cover as requested. If you have employees, even if it is just family members that “help out”, then you must have employers liability insurance. It is the brokers job to recommend to you the cover that you need. As part of this job, the broker will recommend that you have employers liability cover in force.

As with every legal document though, you are obliged to look through the wording and to read and understand what cover is provided. Do not assume that the broker has not made any errors. Whilst the likelihood is very, very low that an error is made, you should always check that you have employers liability or EL, and that you have a certificate of employers liability.

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Public liability insurance – what is a reasonable excess?

Saturday, April 17th, 2010

We first of all need to look at what an excess is. If you take out public liability insurance, or any other type of insurance cover, you will receive a policy wording and a schedule of insurance.

This can either be in hard copy format or it will be sent to you electronically. Legally, in the UK, you must receive these two documents within 30 days of your insurance cover starting. Or, such confirmation of insurance cover to satisfy you that the insurance protection is in place.

Within your policy wording there will be many terms, conditions, warranties, exclusions and excesses. An excess is basically the amount that you will pay, or contribute towards any claim. Some insurance covers, such as employers liability, do not normally have excesses (unless you go to a real “fringe” insurer, which is usually not recommended).

The purpose of an excess is simply to save the insurers money by not dealing with and/or paying out on small value claims. If you are a carpenter and have public liability insurance, your insurers do not want to pay out because you dropped a hammer and caused £5 worth of damage to a tiled floor.

So, insurers apply different levels of excess to try and prevent you from putting in low value claims. It is very, very important though that you do declare such losses to an insurer. As a worst case scenario, if you as a sole trader have had to pay out of your own pocket for 25 damage claims, all around £50-£100 in the last year, then the insurer has to know because this is worse than careless and only a matter of time before a major claim comes along.

A sensible excess for a trades policy (ie plumbing, building, bricklaying etc) is anything between £100 and £250. Most commercial insurance companies have a standard excess of £100, which can increase to £250 or even £500 if you use heat (ie blowtorches, blow lamps).

Any more than this, then it is time for you to look elsewhere as you really would expect your insurance to kick in for any damage claims over £250.

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Office insurance – staff using computers at home

Thursday, March 25th, 2010

Remote working, working from home, flexible working – whatever you want to call it, staff working at locations other than their main business address applies to most companies.

It may be only a day or two here or there with a laptop, or you could have staff that spend 90% of their time home working and only pop into the office once or twice a month.

Not only does this have health and safety and employment contract considerations, you also have to think about whether your office insurance policy provides suitable cover.

In the main there are two areas of cover that this affects. Firstly, employers liability insurance. As we all know, or should do, if you employ anyone then you need to have adequate cover in place, at a minimum limit of indemnity of £5,000,000. This should cover your employees wherever they are working, staff in the office, sales staff at a conference or employees working from home. Most policies will automatically include this as, legally, you are not allowed to have too many restrictions on EL cover. But, some of the fringe insurers, who shall remain nameless, do have a few sneaky conditions. Make sure though, that your broker is aware that you have staff potentially working throughout the UK.

The second point is for your business assets. You need to have an “all risks” section that covers laptops, IT, smart phones etc so that if they are stolen from an address other than the office, you have cover in place.

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Public liability insurance – what is it and do I need it?

Saturday, March 13th, 2010

Everyone understands the phrase “you are liable”. This means you, or a third party, are responsible for something.

When we start to talk about the legalities of this, we think about public liability insurance, which can be confusing for a business.

The first thing to ask is, what exactly is it? Simply put, it is your legal liability for any loss, damage, disease or injury (physical or psychological) to any third party person or property. The key thing here is “legal” liability, whilst you may feel a moral obligation in certain circumstances, public liability insurance only applies if you can be proven to be liable, at law.

The second thing to ask is, do I need it? Maybe or maybe not. There is not the similar legal requirement to have the cover that applies to employers liability insurance. But, you may need it as part of a contract or because you want to protect your business in the event of a claim.

If you are unsure, call a broker to discuss their thoughts on whether you do need this cover and let them get you a comparative quote.

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Employers liability insurance – should I bother?

Sunday, March 7th, 2010

If you employ anyone, whether they are full time, part time, salaried or not, you will need to have employers liability insurance.

Many people get confused as to whether they need insurance or not. It is more than likely that you do need the cover. The worst thing that can happen is that you find out that you need the cover only because you have received a claim for a solicitor.

There are two reasons why you need the cover. If an employee gets to the stage of visiting a solicitor to allege that you have been negligent and to make a claim, then we can guarantee that is is going to cost money. Even if it a minor claim for an injured finger, the bill can be many thousands when you add up the solicitors bill, the settlement amount and the time you have spent dealing with it.

As well as this, as it is legal requirement, if it can proven that you have not arranging cover, in the full knowledge that you need it, you can be fined up to £2,500. This is not a total fine, this is per day! In reality this does not happen very often but what an incentive paying £2,500 per day can be to go out and get yourself commercial liability insurance.

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Employers liability insurance – minimum limit of indemnity

Wednesday, January 27th, 2010

Here in the UK, we may feel at times that there are too many rules, too many laws and too much intrusion from the State. In practice, this is probably true. However, there are many benefits to this system of government which has been in existence for the last 100 years.

The thing is, with many of the benefits, you do not even know they exist. Alternatively, they are so ingrained in our way of life (voting democracy for example) that we don’t even realise how good things are.

One area where you may not realise the benefits of state intervention, is employers liability insurance. If you work for anyone, whether you are paid a salary, dividends, bonus or you work as an unpaid volunteer, your employer must have in force a certain type of insurance.

This governed by the Employers Liability Act 1969 (with numerous revisions). What this act means, very simply, is that you have the right to sue your employer if, through their negligence, you have suffered injury, illness or disease.

Negligence is fairly wide ranging and does include something such as them not training you correctly to use a machine. This is different from public liability insurance, which is responsibility for the same things to anyone who isn’t an employee.

The law says that an employers must have a valid contract of insurance in force that provides a minimum limit of indemnity of £5,000,000 any one claim. In fact, most insurers provide double this as standard.

You will not, unless your insurer is acting illegally, get a policy with anything lower than £5m.

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