Employers Liability Insurance protects you as required by the law relating to the compulsory insurance of legal liability to employees whilst they are employed in Great Britain, the Isle of Man or the Channel Islands.
The limit of indemnity is £10,000,000 (£5,000,000 if liability arises out of terrorism) any one cause inclusive of all legal costs.
The insurance cover is extended to include legal costs incurred in the defence of criminal proceedings brought for a breach of the Health and Safety at Work Act 1974, up to a limit of £10,000 in any one period of insurance.
If we require you or any of your directors, partners or employees to attend court as a witness in connection with any claim under this section we will provide compensation of up to £250 for each day of attendance.
Note that due to legal changes all insuring companies must supply the Employee Reference Number (the ERN) – this is also commonly referred to as ‘Employer PAYE Reference’. By law we must supply the ERNs to the ELD (Employers Liability Database) held by the Employers Liability Tracing Organisation (ELTO).
The following key points have been identified with HMRC regarding the ERN:
- UK businesses employing one or more people are required to have an ERN, which is the reference number for their employees’ income tax and national insurance contributions.
- A tiny minority of employers do not have an ERN. However the only exemption occurs where the employer pays all their employees below the PAYE threshold (£503.00 monthly).
- The ERN is printed or written on mandatory documents including the P45, P60, P11/D, and on most payslips.