Sunday, 8 May 2011

Employers Liability Insurance for Contract Cleaners

What is employers liability insurance?
Who needs employers liability insurance?
How much does contract cleaners employers liability insurance cost?

Advice and quotes for contract cleaners from GLEAMING INSURANCE.

What is Employers Liability Insurance?

Employers Liability Insurance is a form of insurance that protects the welfare of employees and provides them a route to obtain compensation in the event that they are injured at work. It protects the employer also from having to pay such claims. The cover is legally required by any UK business that employs staff or uses labour only sub-contractors.
If you operate your business as a contract cleaner with staff then you must buy Employers Liability Insurance otherwise you will be breaking the law as well as risking your livelihood and the livelihoods of your staff.

Who needs Employers Liability Insurance?

To completely understand who needs Employers Liability Insurance you will need to read the Employers Liability (Compulsory Insurance) Act of 1969 which explains the legislation in detail. Whilst there are some exclusions in the act the general rule is that any business that employs staff, whether full or part time legally needs Employers Liability Insurance. That includes sole proprietors, partnerships and limited companies. In fact, if you are a director of a limited company and you have a fellow director then you must have Employers Liability Insurance as you are both classed as employees of the business.
Sub contractors who work under your control and are paid a weekly or hourly rate are also generally classed as employees and need to be protected. If you are in doubt at all please give us a call on 0845 474 0068 and we will be happy to advise you on the covers you need.

How much does Employers Liability Insurance cost?

That depends on the size of your business. Some insurer's will charge you a premium per person which can be very expensive. At GLEAMING INSURANCE we calculate premiums based on your approximate turnover and wages. That helps to keep the costs down and allows you to increase the number of staff without having to tell your insurer every time. Be wary of insurer's who require a declaration at the end of the year because if you exceed the estimated figures you end up with an additional premium to pay. We don't require declarations, we allow you flexibility in your figures to cater for seasonal increases or new contracts being won.

How much Employers Liability cover do I need?

All insurers will provide you with a £10,000,000 limit of indemnity even though the legal requirement is only £5,000,000. This is the level that has been agreed between the Association of British Insurers and the Health & Safety Executive.