Why Does A Manufacturer Need Employer's Liability Insurance?

Employee welding wearing a welding mask and surrounded by smoke.

Whether you have a small and close-knit team or hundreds of staff across the country, if you employ anyone in your business, you need employer’s liability insurance.

The manufacturing industry is one with many different applications, and there is no one way for manufacturing employers to go about protecting their business. However, we know that it can be confusing and time-consuming to find out what each employer needs and how it works. In this article we will explain what employer liability insurance is, who needs it, and why it’s vital for manufacturing in particular.

What is Employers’ Liability Insurance?

Employers’ Liability Insurance is a legal requirement for businesses that employ staff members. This is the same for all businesses, no matter the size of the team or the industry.

This type of insurance covers employers in the case that an employee suffers injury or illness as a result of their work for the business. It can cover both compensation and the cost of claims and legal expenses in the event you need to go to court.

Do I really need Employer’s Liability Insurance?

The likelihood is: yes! If you have contracted employees working with you or for your business, you most likely do need to take out this kind of cover.

All employers must be covered for at least £5 million and come from an authorised insurer.

There are only a select few types of businesses that are not legally required to have this kind of commercial insurance. These include:

  • Family businesses that only employ family members
  • Businesses with only one

Keep in mind, without adequate cover in place, employers can be fined up to £2,500 per day.

Why Do Manufacturers Need It?

Not only is employer’s liability insurance a legal requirement, but in a manufacturing setting, it is simply good sense. In industries like manufacturing where heavy equipment and specialist machinery are used on a daily basis, there is a higher risk of injury for employees.

Wholesale and manufacturing insurance policy packages are specially designed for manufacturing business owners and include a combination of covers to help protect your business. This commonly includes employer’s liability insurance, public liability insurance, and business interruption insurance, but can also include a range of commercial insurance types to cover you if the unexpected happens.

Not only this, but with Alan & Thomas we can help manage your business risk while keeping you covered. Our Risk Management service is complimentary to all clients who find their bespoke manufacturing insurance needs through us.

Not sure what the best option for your manufacturing or wholesale insurance is? Speak to one of our chartered insurance brokers by finding your local branch today, or send in a message and we’ll get back to you as soon as we can.