Employer's Liability Insurance

Now we’ve made it through Christmas, the New Year and the madness of January, now is a good time to take stock of the legislative responsibilities placed on employers. Today we’re thinking about Employer’s Liability Insurance and statutory sick pay.

Nearly everyone knows about Employers Liability obligations but what exactly are you obliged to do? ask someone what the Statutory Sick Pay amounts are and they may be unlikely to give you an answer.( The answer is, by the way, £89.35 per week for up to 28 weeks after 4 consecutive days off ill).

Employers should seek to insure their statutory obligations (although many insurers do not like covering the first 7 days of illness – accident cover can start from day one). That’s why seeking a broker’s advice beforehand is advisable to ensure you’re getting the best deal for your needs.

Employers can go further than their statutory obligations by covering for say 52 or 104 weeks. Equally the limit does not need to be the SSP figure. It is not uncommon for cover to be arrange for up to 2/3 of average weekly wage.

Some employers will see it as a benefit to safeguard the relationship with a staff member who has to take sick leave. Additionally, some employees will arrange insurance on those employees who are “key” to the business – a real incentive for employees to stay with your company.

You may also wish to cover against the cost of recruiting and placing a temporary member of staff, particularly if it is unclear how long the original staff member will be away from work.

Very few staff arrange cover themselves and rely on their employers. This assumes the employer has done this and also assumes that the people concerned are employees and not labour only sub contractors; that is without the self employed category.

It is amazing how many people are off from work (employed or otherwise) for 2 or more weeks at a time. In the UK, absenteeism (staff absent from work)costs the UK economy £18 million – can you really afford to be part of that statistic?

There are numerous ways accident and sickness insurance can be arranged, so all in all it shows how important it is to get impartial advice from an insurance broker. Most brokers will prepare a report with no(or little) charge so why not take advantage of it?

Want to get your employer liability cover sorted? Call Premiercare Insurance Brokers on 0208 446 6742 and we will be happy to talk it through.