What is Employers' Liability?
If you employ people, you are required by law to have Employers'
Liability insurance. However, people you normally think of as
self-employed and/or volunteers may be considered as your employees for
the purpose of Employers' Liability cover. What matters is the nature of
your 'real' relationship with the people that work for you. The people
that work for you require protection in the workplace for
circumstances that may lead to a claim being made against you in your
capacity as 'employer'. From relatives helping out as volunteers to
dance teachers leading classes, adequate protection should be in place.
In general, you may need Employers' Liability insurance for someone who works for you if any of the following applies:
- You control or manage where and when they work and how they do it
- You supply most materials and equipment
- You have the right to any profit your workers make, although you
may choose to share this with them. Similarly, you will be responsible
for any losses
- You deduct National Insurance and income tax from the money you pay them.