ALL employers must have Employer’s Liability Insurance. It is a CRIMINAL (not Civil) offence to employ someone without having this insurance in place. The vast majority of domestic employers will already be covered as just about all “Household Contents” insurance policies will include cover for domestic workers such as nannies or housekeepers. Unfortunately, the insurance companies offering this cover often bury it in the small print and it is hard to find.
As may be seen from the examples below, this topic is not always straightforward and policies and limits will vary significantly between insurance companies. We set out some examples below:
Aviva – provide cover under the single heading of “Occupiers, personal and employers’ liability”. Limit is not printed in the policy or summary of cover, but will be within a personalised schedule.
Axa – have separate headings of “Liability to domestic staff”and “Occupiers and public liability”. No limits stated in policy, but summary states £10M for domestic staff and £2M for other third parties.
Direct Line – have separate headings for “Personal liability”and “Employers’ Liability” stating limits of £2M and £5M respectively.
Hiscox – provide cover under heading of “Your legal liabilities”. No specific reference to employees other than that certain additional policy exclusions relate to employees. The limit of cover provided is stated in the personalised schedule not the policy. The limit stated in the schedule will be greater for employees than third parties, but this is not made clear in the policy wording.
Liverpool Victoria –have separate headings for “Liability to the public”and “liability to domestic employees”stating limits of £2M and £10M respectively.
More Than –provided under the single heading of “The Insured’s legal liability”and states a limit of £1M then goes on to state a separate limit of £10M for bodily injury to employees.
As you can see above, just about all the major home contents insurers will provide public and employers’ liability cover. Some make it clear that their policy includes liability for bodily injury to employees. Others do not. For those insurers wordings that do not separate out the employers’ liability cover what all will state, either within the policy wording or the customer’s personalised schedule, is a higher limit for bodily injury to employees.
PAYE for Nannies would strongly recommend that you check with your particular insurance company to confirm that you are fully covered.
If you have a Household Contents policy in place but have some concerns that it will not provide the complete cover you would like or you feel the level of cover is too low, PAYE for Nannies, as an Authorised Representative of Mark Bates Ltd., can arrange a Home Help insurance policy.
This is a contingent policy designed for people who employ staff in their home and, in conjunction with an existing household contents policy, will provide cover in respect of employers’ liability, legal expenses and compensation awards, personal accident, financial loss and public liability.
The policy also gives access to a helpline, staffed by fully qualified lawyers, which will provide comprehensive legal and employment advice. The helpline is staffed 24 hours a day, 7 days a week for telephone enquiries and may also be contacted via email if you prefer.