Every business needs Employers Liability Insurance. It can shield the business from the compensation costs they would otherwise pay if an employee is injured at work. But that doesn’t mean a business should neglect its responsibility to provide a safe environment for its staff.
The Health and Safety Executive (HSE) has recently prosecuted Marks and Spencer plc, Willmott Dixon Construction Ltd and PA Realizations for putting its staff, construction workers and the public at risk of exposure to asbestos containing materials. The high profile supermarket was carrying out renovation to its Reading and Bournemouth stores when the life-threatening substance was discovered in the ceiling tiles.
During the hearing it was revealed that Marks and Spencer had not allocated sufficient time for the removal of asbestos-containing materials, meaning the contractors had to work overnight. The HSE alleged that Marks and Spencer plc failed to make sure the work complied with the minimum standards set out in legislation and approved codes of practice.
Contractors PA Realisations had failed to reduce the spread of asbestos to the shop floor in the Reading branch. In the Bournemouth store, Wilmott Dixon Construction was found to have failed in their planning, management and monitoring of asbestos removal. Without Employer’s Liability Insurance, any subsequent claims brought by contractors would have to be paid by the companies themselves, rather than their insurers. And that could be very costly indeed.
Required By Law
Employers Liability Insurance UK is required by law for any UK business that employs staff or uses labour-only sub contractors. If one of your employees sustains an injury or industrial disease during the course of his or her employment and seeks compensation, this insurance provides you with indemnity. For example, a worker could sue the business he is employed by if he hadn’t been given the correct safety equipment or received the appropriate training. If that is the case, then any costs awarded would be met by the insurer and not the company. This can make a huge difference to the cash-flow of any business, particularly smaller SMEs.
A minimum of £5 million is required by law, though most insurers will offer a £10 million limit of indemnity. Employers Liability Insurance is usually bought with public liability insurance as part of a Combined Liability Insurance policy. If an employer already has public liability insurance, then they should add it on to that policy. You can check out public liability insurance quotes online.
Visit our site today for information on small business public liability insurance or alternatively other liability insurance matters.
