This is a compulsory class of insurance for all but the smallest, family businesses. The policy covers you for the cost of negligence claims brought by your employees against you for death, injury and disease.
Injuries to employees have a significant human impact. However, there are also financial impacts not only around the compensation provided to employees but also for legal fees and significant amounts of management time in dealing with the claim. We will work with you to address Health & Safety risks and to help bring down the overall cost of claims.
The minimum compulsory limit for Employers Liability is £5,000,000 but for most businesses this is too low. Having too low a limit of indemnity puts a business at risk due to significantly uninsured losses.
On 7th September 2017, the Lord Chancellor and Justice Secretary announced that the discount rate used to calculate future losses in personal injury and fatal accident cases was to fall. The new discount rate is still to be determined but as stated in the government’s press release: www.gov.uk/government/news/reforms-to-compensation-payouts-announced it is estimated that it could be between 0% and 1%. This will affect the amount of compensation that someone is awarded for a personal injury claim - the lower the discount rate is, the higher the initial lump sum award.
As an example, a 25-year-old female earning £20,000 net a year but so seriously injured in an accident that she can never work again and requires nursing care estimated at £50,000 a year: The previous calculations would have awarded her compensation of £2,096,500. If the discount rate remained at minus 0.75% the award would be £5,205,000 but if the discount rate is reduced to, say, 0.50% the compensation would then be calculated as £3,489,000. Such items as legal costs would be in addition to the calculated amount. The new discount rate for catastrophic injury claims is still to be determined but as can be seen from the example it will have a significant impact.
Any business which has exposure for injuries to employees has a significantly increased financial exposure due to the reduction in the discount rates, particularly if faced with claims from several injured parties. In the event of a very serious accident your existing Employers Liability limit of indemnity may not be sufficient to meet your financial liabilities and we will work with you to mitigate that possibility.
Preventing accidents has both human and financial benefit. Insurance is a method to transfer your risks to another party but there are still exposures which remain uninsured such as the management time spent in dealing with the aftermath of accidents. Good Risk Management practices help to prevent accidents or to mitigate the cost of those that, unfortunately, still do occur.
Working in conjunction with selected insurers or specialist independent companies we can help you to put together an appropriate Risk Management programme.
Outside these formal Risk Management programmes, you can also obtain useful information by keeping up to date on Health & safety issues by subscribing to sites such as the HSE at: www.hse.gov.uk/risk/office.htm
Our aim is to help you avoid any claims which will disrupt your business. In addition to the specialist local companies with whom we work, many of our partner insurers offer risk management tools at either no charge or discounted prices.