Do I need Employer’s Liability Insurance for each Director in my company? Are you covered?
We get asked this question a lot.
If you run a Limited Company, and you have more than one Director registered, you need to have Employer’s Liability Insurance for each Director.
It doesn’t matter who that other person is, if it’s your wife/husband, daughter/son, or sister/brother. By law, you need to have Employer’s Liability insurance.
We see it quite often in smaller businesses, where they have someone else mentioned, but it’s not an active person within their business. The primary Director ‘forgets’ that the other is recorded as part of the business, so they don’t have them covered under the employer’s liability policy.
The time that we see it happen most often is with businesses where they may have set up a separate limited company so that they can put the ownership of their property through it or their assets through it. They have more than one Director registered. As soon as that happens, they need to have compulsory employer’s liability.
What if I don’t have Employer’s Liability for each Director?
If you don’t have Employer’s Liability cover for each and every Director in your limited company, the HSE (Health and Safety Executive) can fine businesses two and a half thousand pounds per day that they've traded without it
If you're unsure whether you need this or not, or you need to put insurance in place, please contact us by clicking on the ‘Contact’ button on our website.
Useful links
Here are some useful links if you want to know more:
https://www.gov.uk/employers-liability-insurance
https://www.hse.gov.uk/simple-health-safety/insurance/index.htm