More than just a legal responsibility, employment liability insurance (also known as employer liability insurance) protects construction companies against losses incurred by employee compensation claims should any member of staff be injured or disease-stricken at work.

What Does Employer Liability Insurance Cover?

If a construction company has more than one employee, the law states that it must have employment liability insurance. The safety of staff at work is the responsibility of the employer. If a member of staff becomes injured or ill as a result of working on a construction site, they may be entitled to compensation.

Claims can be made by former employees who have become sick as a result of their previous employment with a construction firm. In the event that a claim is brought against your company by existing or former employees, employer liability insurance will allow you to pay the compensation for their injury or illness, which, depending on severity, can be extremely high.

Without employment liability insurance, construction companies face astronomical compensation payments if claims are made against them, as well as fines for breaking the law. Fines can amount to £2,500 for each day that a business is not suitably uninsured. This means that even if your company is insured but was mis-sold insurance or is deliberately underinsured, the firm carries the risk of penalty.

Failure to provide a valid certificate of insurance when asked will incur a £1,000 fine.

Making Sure You’re Covered

The award-winning team at Covered Insurance Solutions gets to know every business individually to find the cover that’s right for them. We’ll ensure that your construction firm can comfortably cover the costs of compensation resulting from sickness or injury of staff during their time on site.

To discuss your needs further and to obtain a public and product liability insurance quote, click on contact us now or call us on 0345 862 2727.