An insurance specialist has warned that nearly half of small businesses in the UK could be unknowingly breaking the law by not having the required employment insurance.
For businesses employing one or more people, it is mandatory to take out Employer’s Liability Insurance. However, recent research by YOUR Insurance suggests 47% of businesses are unaware of this law.
The only businesses who are exempt from this requirement are those where the owner is the sole employee and owns at least 50% of the company’s issued share capital, and those who employ close relatives (not including limited companies).
Annie Plaskett, marketing manager for YOUR Insurance, said: “It’s concerning to see how many people appear unaware of their legal obligations. Anyone employing full or part-time staff, sub-contractors, work experience students or volunteers should have this compulsory cover in place. Without it, the financial consequences could be severe.”
Were you aware of the requirement to take out Employer’s Liability Insurance? Leave us a comment to let us know.