Employers\u2019 Liability Insurance protects employers from claims of negligence made by employees who suffer injury or ill health due to their work. Unlike most other types of insurance, Employers\u2019 Liability Insurance is compulsory. If you employ workers based in England, Scotland or Wales (including offshore installations or associated structures), your company must carry Employers\u2019 Liability Insurance to avoid substantial fines.<\/p>\n
Whilst it is difficult to provide an accurate definition (as the law does not provide one), it is important to try to correctly\u00a0determine the status of sub-contractors to ensure that the correct insurance cover is in place. If a sub-contractor is\u00a0a bona-fide sub-contractor (BFSC) Employers\u2019 Liability Insurance is not required but if a sub- contractor is a labour only\u00a0sub-contractors (LOSC) Employers\u2019 Liability Insurance is required.
\nThe following definitions and guide will aid the decision making process.<\/p>\n
Labour only sub-contractors, self-employed people, people hired or borrowed by you or embedded in your\u00a0business are considered employees if they are working for you and under your control.<\/p>\n
Other contractors who are not Employees i.e. bona-fide sub-contractors \u2013 (BFSC)<\/strong> If the answer is \u2018Yes\u2019 to all or most of the following questions, then the worker is probably a\u00a0LOSC<\/strong>\u00a0and\u00a0would need to be covered for Employers\u2019 Liability Insurance:<\/p>\n 1. Are they paid by the hour, week, or month? 1 Do they agree to do a job for a fixed price\u00a0regardless of how long the job may take? This is an overview and should alway be taken in the context of your situation, if you are in any doubt please\u00a0contact us\u00a0we will assess your particular circumstances, where we feel there is a gray area we can advise on how to clarify the situation.<\/p>\n","protected":false},"excerpt":{"rendered":" Employers Liability – is one of the few insurance covers required by Law. Many companies fall short with their cover because the innocently believe their ’employees’ are self employed. There’s a little more to it.<\/p>\n","protected":false},"author":1,"featured_media":23406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-23405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial"],"yoast_head":"\n
\nIf they are not working directly for you and not under your control and they have their own insurance cover.<\/p>\nGeneral guide<\/h3>\n
\n2. Can they receive overtime pay or bonus payment?
\n3. Do they only supply their own small hand tools?
\n4. Do they always have to do the work themselves?
\n5. Can the Insured tell them at any time what to do,\u00a0where to carry out the work or when and how to\u00a0do it?
\n6. Can they work a set amount of hours?
\n7. Can the Insured move them from task to task?
\n8. Does the Insured complete the Risk Assessments?<\/p>\nIf the answer is \u2018Yes\u2019 to all or most of the following questions, then the worker is probably a BFSC and\u00a0Employers\u2019 Liability Insurance for these sub-contractors is not required<\/h3>\n
\n2 Do they have a contract of service as opposed to\u00a0a contract of employment?
\n3 Within an overall deadline, are they able to decide\u00a0what work to do, how and when to do the work\u00a0and where to provide the services?
\n4 Do they regularly work for a number of different\u00a0people other than our Insured?
\n5 Do they have to correct unsatisfactory work in their own time and at their own expense?
\n6 Do they hold their own public liability insurance in\u00a0their own name?
\n7 Do they pay the cost of all materials or supplies\u00a0required for the work without being reimbursed?\u00a0(Excluding minor items and consumables).
\n8 Can they hire someone to do the work or\u00a0engage helpers at their own expense?
\n9 Do they risk their own money e.g. if they bid for\u00a0a job and the bid is too low they have to bear the\u00a0additional cost themselves?
\n10 Do they provide or hire in the main items of\u00a0equipment they need to do their job, not just\u00a0the small tools that many employees provide for\u00a0themselves?<\/p>\n