What is Employers Liability Insurance?

As a contractor, you must have the correct insurance coverage to protect you against legal costs or compensation requirements arising from accidents while working on an assignment for a client. Continue reading to discover what Employers Liability Insurance is and what the insurance cover provides to contractors and freelancers.

What is Employer’s Liability Insurance?

Employers Liability Insurance is a legal requirement for most businesses in the UK with employees. Included in the legislation is:

• Full and part-time employees
• Self-employed contractors
• Apprentices
• Volunteers
• Temporary staff
• People taking part in training schemes or work experience

Employer’s liability insurance safeguards businesses against compensation expenses and legal costs that arise from employee claims caused by their work. It is an important insurance to have as it covers the legal fees, compensation costs, or damages that an employee could be entitled to as a result of injury or illness which may have been caused while working for your business.

Is it compulsory to have Employer’s Liability Insurance?

It is a legal requirement for most businesses to have employer’s liability insurance. The obligation is outlined in the Employer’s Liability (Compulsory Insurance) Act 1969 (available to view here). As soon as you become an employer, you must get employer liability insurance, and your policy must cover you for at least £5 million. However, most umbrella companies provide £10 million as standard. If you do not have adequate insurance, you could be fined up to £2,500 each day if you are not adequately insured. There are exceptions to the rules and you may not need Employers Liability Insurance if you only employ someone based abroad or a family member.

If you are an umbrella company contractor, your provider should provide a comprehensive insurance package (including Employers Liability Insurance) as part of the service. If you need clarification, please check with your umbrella company what insurance cover is provided. As an employee of Churchill Knight Umbrella, you are covered by £10 million employer’s liability insurance.

What insurance is included as part of the service with Churchill Knight Umbrella?

When you register with Churchill Knight Umbrella, you can benefit from our comprehensive insurance package, which includes £10 million employers’ liability insurance, £10 million public liability insurance, and £5 million professional indemnity insurance.

Are you looking for an umbrella company?

Since launching in 2017, we have quickly become one of the most popular umbrella companies in the UK and process payroll for thousands of contractors and freelancers each week. Having passed the strict assessment and auditing process, Churchill Knight Umbrella is pleased to be an FCSA-accredited umbrella company. Using an FCSA-accredited umbrella company means you can rest assured your payroll is processed compliantly.

We’re also proud to be a SafeRec-certified umbrella company. Every time we process a payment, SafeRec’s auditing tool thoroughly assesses the deductions and payment, which is also cross-referenced with the RTI sent to HMRC to ensure workers are being paid compliantly. This level of transparency has never been seen before and gives our employees complete control to check they are paid correctly.

To find out more about Churchill Knight Umbrella’s PAYE umbrella service or to discuss how we can help you get paid compliantly, please call 01707 871622. Alternatively, please schedule a call for a time that suits you, and a member of the team will contact you.