When Employees Attack! Don’t Leave Home Without Employers Insurance

One of the worst parts of running a small business is dealing with staff.  Even the most loyal employees can sometimes develop grudges and this can spell bad news for employers.  There have been several occasions over the last few years when my business has literally been saved by employers liability insurance.

This has protected me financially against legal claims made by current and previous employees.  I would never be without this essential type of insurance and strongly urge other small businesses to get cover as soon as possible.

Legal Claims that can Destroy Businesses

The trouble with employment law is that it is so complicated.  As a small business it is impossible to keep up to date with the latest changes in HR.  Although I have spent a lot of money getting contracts and HR policies written problems can still occur. 

legal matters

Photo source: http://www.flickr.com/photos/photosbytravis/2356409101/

  • Last year I was forced to make a claim on my employers liability insurance when I received a Notice of Hearing from the Employment Tribunal.
  • This was from a former employee.  I had been forced to dismiss them because of gross misconduct and they had put in a claim against unfair dismissal. 
  • I was confident I had followed my dismissal procedures correctly and that this claim would be thrown out at tribunal. 
  • However without my employers liability insurance it would have cost me somewhere in the region of £4,000 just to get legal advice and attend the tribunal. 
  • There are no ‘No Win No Fee’ solicitor services for employers and this meant that I would have had to pay out upfront just to defend the claim. 
  • Just think what would happen if everyone you were forced to dismiss put in the same type of claim.  You could spend many thousands of pounds just defending your business from legal claims each year!
  • I was able to claim all my legal fees for this Tribunal hearing through my employers liability insurance.
  • I was also offered peace of mind if for any reason I lost the case as my insurance policy covered any compensation claims that would have arisen. 
  • My insurance provider also helped me to find an advocate to prepare the paperwork and represent me at the hearing.
  • This was invaluable as I would just not have had the time to do this myself and run the business.
  • Given that the former employee was trying to claim nearly £12,000 from me without my employers liability insurance I could have been in big trouble.

Protect your business from possible legal claims from employees with employers liability insurance.  This type of insurance could make all the difference if a claim is made against your business.

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