Employers Liability Insurance

Individual Employers must have Employer’s Liability Insurance to ensure both you and your Personal Assistants are protected in the event of an accident or incident.

The details of your insurance policy may vary between companies, but it generally includes three main components:
- Employer’s Liability
- Public Liability
- Legal Expenses

Employer’s Liability Insurance and/or Public Liability Insurance is crucial. As an Employer, you are legally required to have insurance to cover accidents or injuries to your staff, as well as accidents or injuries they may cause while working for you.

Employer’s Liability Insurance protects you if your Personal Assistant(s) file a compensation claim due to injury or illness caused by their work.

Public Liability Insurance covers you if anyone else makes a compensation claim for injury or property damage caused by you or your personal assistant(s).

If you receive a Direct Payment or Personal Health Budget, you should confirm that your Local Authority or the organisation providing your Personal Health Budget has included Employer’s Liability Insurance in the amount they provide.

As an employer of Personal Assistants (PAs), you are required to maintain valid Employers' Liability (EL) insurance at all times. 

You are responsible for ensuring the health and safety of your PAs while they are working for you. This includes conducting a thorough risk assessment to identify and reduce potential hazards in your workplace. In some unfortunate situations, your PAs (or former PAs) may suffer injuries or illnesses directly related to their work with you. If this occurs, they may seek compensation from you if they believe you are at fault. 

Employers’ liability insurance provides the necessary coverage to protect you in case you need to pay compensation or legal costs related to a claim from a PA. The minimum insurance requirement is £5 million, though most insurers offer coverage of at least £10 million. 

The Health and Safety Executive (HSE) is responsible for enforcing the law regarding Employers' Liability (EL) Insurance. HSE inspectors conduct random checks to ensure that employers have valid EL Insurance with an approved insurer, covering at least £5 million. If they visit your workplace, they will request to see your EL Insurance certificate and any other relevant documents. 

You could face a fine of up to £2,500 for each day you are without EL insurance. Additionally, if you fail to display the insurance certificate or refuse to provide it to HSE inspectors when asked, you may be fined up to £1,000. 

However, if you hire close family members to assist with your care or support, you might be exempt from this requirement.

Keep in mind that, even if you're exempt, the local authority or NHS funding your Direct Payment (DP) may "require or recommend" you to obtain this insurance. It's important to review your direct payment agreement, and if it's unclear, reach out to your funder for clarification. 

Unless you qualify for an exemption, it is illegal to employ PAs without EL insurance, and failing to do so can result in significant fines. Additionally, you are required to display your EL insurance certificate in a location where your PAs can easily view and read it.