If you employ staff, employers’ liability insurance is a legal requirement. It covers both you and your staff in the event of injury or illness at work and covers full-time, part-time, and temporary staff and anyone who has previously worked for you. There are two exceptions:
* You run a business where you employ close family members (parents, spouse, children) and the business isn’t limited
* You’re a limited company in which a single employee owns more than 50% of the share capital
The minimum legal requirement for cover is £5 million but you may need to take out higher insurance, particularly if you work in a high-risk industry. The financial costs of not having insurance can be severe and you could find yourself liable for damages and medical costs, and be fined up to £2,500 per day.