What is Employers’ Liability Insurance and why does your club need it?

You are required to have Employers’ Liability Insurance by law if you employ people at your club. The Employers’ Liability (Compulsory Insurance) Act 1969 states your policy must come from an authorised insurer and must cover you for at least £5 million.

This type of insurance makes sure that you’re covered if an employee sustains an injury or becomes ill as a result of your negligence and makes a claim against you. Your insurance will cover you for any legal costs and compensation payments up until the maximum amount stated in your policy.

It’s worth nothing that if you don’t have Employers’ Liability Insurance, or don’t have your certificate displayed either at your club or available electronically, you could be fined.

Do I need Employers’ Liability Insurance for my volunteers?

You still have the same duty of care for volunteers as you do for paid employees under the Health and Safety at Work Act. Your club will need to insure your volunteers against injury or illness, either through your Public Liability Insurance or Employers’ Liability Insurance. If you’re not sure, check your Policy Wording or speak to your insurance broker.

Remember, if you don’t have the right insurance cover in place and a volunteer makes a claim against your club, you could end up needing to defend or settle the claim with your own funds.

Will my Employers’ Liability Insurance cover me against theft by an employee?

Standard Employers’ Liability cover will only cover you for costs related to employee injury or illness. If you are looking for cover in case an employee (either paid staff or a volunteer) steals from your club (either money, property or stock), you will need to speak to your insurer or insurance broker about taking out additional Fidelity Guarantee Insurance.

How can I defend a claim during an employment dispute?

You will need to make sure you’ve done your due diligence and complied with all relevant laws and regulations.   

Your club has a responsibility to maintain a safe working environment for everyone who visits your club or works for you. If an employee is injured because you have not created a safe working environment, they could make a claim against you.

You must carry out a full risk assessment and ensure you take relevant steps to mitigate risks. Employees must have relevant training and should not be expected to carry out tasks that could put them at unreasonable risk. Employees or volunteers should never be expected to undertake tasks they aren’t physically capable of or adequately trained / prepared for, such as heavy lifting or undertaking a task without relevant protection equipment (goggles, safety shoes, earplugs etc).

Your club should have an accident prevention plan in place, which covers employee health and safety practices and reporting procedures. Report any health and safety hazards and deal with them immediately to avoid accidents. Any spillages should be cleaned straightaway and this action recorded.

With the correct due diligence in place, you should be able to maintain a safe environment for both your visitors and employees. Taking health and safety seriously will not only help avoid incidents, but it will help your club to defend a claim should one arise.

For further advice about risk management or your insurance policy, chat to our team.