photo credit: jurvetson When you take out Employers Liability Insurance for your business, which you must do so as required by law, you will have a number of conditions entered into your policy which will specify certain situations where the insurer will not pay out any compensation. These conditions will differ depending on your business activities, but some conditions cannot be entered into the agreement by law.
Your insurer cannot refuse to pay out compensation just because you have not provided sufficient enough protection for your employers against either disease or injury. You will still be breaking the law and will have to pay out compensation to the relevant party, but this compensation will still have to be paid for by the insurer.
If you have not kept accurate records or records then the insurer cannot refuse to pay out any compensation which may arise because of this by law. This is an inconvenience to the insurer and a breach of the law, but any fines will have to be paid for by the insurer.
Furthermore, as part of your Employers’ Liability Insurance policy, your insurer cannot enter into the policy any conditions where they won’t have to pay out any compensation if you don’t do something specified by the insurer. In addition, they cannot enter in any agreement which specifies that they won’t pay out any compensation if you do something you are told not to do.
And finally, if you don’t meet any legal requirements required of your business then the insurer cannot refuse to pay out any compensation which may arise of your failure.
In other words, an insurer cannot refuse to pay out compensation if you break the law. If you discover any of these conditions in the terms and conditions of your Employers’ Liability policy then you can report them under UK law as using these conditions for the basis of not paying out compensation is illegal.
If however, you have neglected your legal responsibilities, and this is the reason for the claim, then they are well within their rights to sue you in order to reclaim the compensation paid on your claim.
Employers’ Liability Insurance is available from www.specialistrisks.co.uk