Companies need to be covered no matter how large or small they are and an Employer’s Liability insurance is one of the best as it is able to provide compensation for any claims associated with liability cases.
A business owner is responsible for the safety and the health of the employees while they are working. Even with the best efforts taken to safeguard the employees within the business premises there is always a chance that an employee may fall ill at work or may even get injured while working. If the employees are of the opinion that they are not responsible for the accident then they will claim compensation. Therefore it is necessary for an employer to know what a Employers Liability Insurance is and what it covers. This will help the employer save himself from such claims.
Some of these claims could end up incur a loss of over a thousand pounds in terms of compensation to be paid. There is possibility that one’s business could go bankrupt due to such claims.

Who requires employers liability insurance?
There are certain places, like in the United Kingdom, where this insurance is mandatory for businessmen. However, generally speaking, it is recommended for any businessman or a professional who has employed staff even if they are on temporary basis or hired occasionally.
In case of limited companies or also companies that deduct National Insurance (NI) contributions or the income tax form the salaries of the employees, having the employers liability insurance cover is mandatory. If you are going to decide when and where an individual is going to work, you need the insurance. It is also needed if you supply materials and equipments for them to work.
It is preferable to have this insurance even if you work form home and have clients or partners who visit your business.
However, for family businesses or a business which is not a limited company are exempt from this insurance. Your business will also be exempt if you are the only employee or if you employ only one one individual, and that individual owns more than 50 percent of the company’s issued shares.
What does this insurance policy cover?
Employers Liability Insurance (ELI) provides the employer with valuable protection against any legal claims of employees who fall ill or get injured at work. It is also able to cover the various costs of compensation arising out of injuries to employees both on site or off site. A major advantage of this insurance is that it provides financial backup to meet the legal costs associated with defending any claims made by employees.
Another advantage of the insurance is that the employees will have a feeling of security with the knowledge that in case of any injury or physical, it will be covered by the company itself.