Question: Do I need to have Employers Liability Insurance by law?
As a very rough idea, this is the requirement for Employers Liability insurance:
- Sole Traders with no employees or subcontractors – No
- Sole Traders with employees or subcontractors – Yes
- Partnerships with no employees or subcontractors- No
- Partnerships with employees or subcontractors – Yes
- Limited companies with one director owning 50% of shares – No
- Limited companies with more than one director OR employing staff or subcontractors – Yes
There is one exemption to the law for sole traders or partnerships where the persons employed are close members of the insured’s family . This being a son, daughter, husband, mother, father or wife, then Employers Liability insurance is NOT required for them. This exemption DOES NOT apply to Limited companies. Further information can be obtained from the Health & Safety Executive (www.hse.gov.uk). You can also follow the following link to read a copy of the latest release from the HSE regarding the Employers Liability Compulsory Insurance Act 1969.