Employer's liability insurance is vital to protect against compensation claims

Employers without liability insurance may come unstuck in the event of a compensation claim and will face investigation from the Health and Safety Executive (HSE), according to one legal expert.

Jon Rees, head of personal injury at Brethertons Solicitors, stated: "The employer would have some questions to answer since employer's liability insurance is compulsory in the UK.

"The HSE would presumably take an interest and fine the employer."

An employer's duty of care extends to employers liability cover in the UK so companies can meet possible employee compensation claims, in the event of a health and safety breach or employment issue. 

Without employer's liability insurance, any claim made against a company will fall to the employer directly.

Employers must have insurance for all employees based in England, Scotland or Wales. This extends to any offshore installations or associated structures.

However, UK law does not require employers to insure workers who are based abroad.

Posted by Jessica Shervin