Yutree are able to consider liability insurance for most trades on our BIBA scheme. October has been a busy month with lots of activity generated by our change of capacity provider and widened underwriting appetite.
To give you a flavour, this month, we have written liability policies for the following trades:
Domestic cleaning service provider
Marine electrical engineer
Mobile crane hirer
Retailer of beauty products
Freelance promoter for musicians
Swimming pool operator
Car park operator
Manufacturer of sports equipment
Event logistics manager
On-line retailers of home brewing product
Why use Yutree?
Fast quote turnaround
£150 minimum premiums
No policy or admin fees
If you would like a quote or to discuss any aspect of trading with Yutree, please call Laura High or one of the team on 01638 675992 or e-mail Laura at firstname.lastname@example.org
As liability specialists we are often asked to explain when Employers Liability Cover is required under the Employers Liability (Compulsory Insurance) Act 1969 (‘the Act’). It is the nuances of the rules which clients can misunderstand. Here we provide some clarity around those grey areas to assist you in your discussions with your clients.
Employers Liability Insurance covers a company for liability for damages in respect of bodily injury, death or disease caused to employees arising out of and in the course of their employment by the insured. All Employers Liability policies are required by law to carry a minimum limit of indemnity of £5m for any one claim. It is industry standard for cover to be issued with a £10m limit – work carried out offshore &/or with asbestos is an exception to this and is normally limited to £5m. Your client is responsible for the health and safety of their employees while they are at work. The Health and Safety Executive is the enforcement authority for Employers Liability insurance compliance. Your client’s business may be fined up to £2,500 for any day they trade without suitable insurance.
What is the definition of an employee?
Whether or not your client needs Employers Liability insurance depends on the terms of their employment contract. This can be spoken, written or implied. It is the nature of the relationship with the people who work for them and the degree of control that they have over the work that they do which defines how they should be treated for insurance purposes.
One area which is commonly misunderstood by clients is around insuring sub-contractors. Your client will employ sub-contractors on one of two bases:
Labour only Sub-Contractors (LOSC) – LOSCs work under your clients’ supervision and direction. Your client will supply materials and tools. The LOSC is paid wages by the main contractor and is classed as an employee for whom your client should buy Employers Liability insurance
Bona Fide Sub-Contractors (BFSC) – BFSC work under their own supervision and direction. They will provide their own materials and tools. They are generally employed to carry out a specialist/particular type of work within a job (i.e. scaffolding/plumbing etc). The BFSC should have their own liability insurance in place and it is important that your client always checks this for their own protection. If the BFSC’s insurance fails, your client is required to provide contingent cover. If there is an accident and a BFSC is injured and their own employers liability cover fails, your client could be responsible for a claim under their public liability section. Your client does not need to buy Employer’s Liability insurance for BFSC.
So does my client really need the cover?
Your client must have Employers Liability insurance if they have employees unless they are exempt. The following employers are exempt:
Most public organisations including government departments and agencies, local authorities, policy authorities and nationalised industries;
Health service bodies, including National Health Service trusts, health authorities, primary care trusts and Scottish health boards;
Some other organisations which are financed through public funds, such as passenger transport executives and magistrates’ courts committees.
Your client is obliged to insure Employers Liability where:
They deduct NI and income tax from the money they pay employees;
They have the right to control where and when their employees work and how they do it;
They supply their employees work materials and equipment;
They have a right to the profit their workers make;
They require that person only to deliver the service and they cannot employ a substitute if they are unable to do the work;
Their employees are treated in the same way as other employees, for example, they do the same work under the same conditions as someone else they employ;
Their employees work for them on an unpaid basis whether they are students, volunteers, interns or other helpers;
Their employees are students, on a work experience programme, or taking part in a training programme
Your client may not need employers’ liability insurance where:
Their employees do not work exclusively for them (for example, if they operate as an independent contractor);
Their employees supply most of the equipment and materials they need to do the job;
Their employees are clearly in business for their own personal benefit;
Their employees can employ a substitute when they are unable to do the work themselves;
Their employees are all close family members (this exemption only applies if the company is not incorporated as Ltd company)
They do not deduct income tax or national insurance. However, even if someone is self-employed for tax purposes they may be classed as an employee for other reasons and your client may still need employers’ liability insurance to cover them
The company employs only their owner where that employee also owns 50% or more of the issued share capital in the company
If you have any questions, please contact me on 01638 675992 or email@example.com or speak to one of our team here at Yutree.
Since its launch in September, Liability by Yutree has proved to be a popular addition to the existing BIBA schemes. It would appear that lots of brokers have ‘one of those’ liability enquiries on their desks.
We are looking to help you with quirky and unconventional liability risks (as well as the normal ones!) We add value on risks which don’t fit an electronic solution and need an underwriter to understand the exposures and to rate them accordingly.
Our minimum premium is £150+ipt and there is no upper limit on turnover.
The following is a list of some of the trades that we have underwritten liability cover for since we launched this product. This gives you a good idea of the breadth of appetite that we have for liability business:
Social networking facilitator and app designer
Seller of coconut oil products
Health food retailer
Provider of Bubble Soccer facility
Distributors of beauty and skincare products
Property owner using site for car boot sales
Rental of storage containers
Wholesaler of vacuum pumps
Cafe and bike hire
Window and door manufacture
Provision of celebrants
If you have a risk that you would like us to consider or if you would like to talk about trading with Yutree then please do give me a call on 01638 675992/07712427988 or e-mail me on firstname.lastname@example.org.
As the dust settles following the excitement of Yutree’s double award scoop on Friday night at the Newmarket & District Chamber of Commerce business awards, we are delighted to start the week welcoming a new member of staff to our growing underwriting team. Contact details are below for your information.
Yutree were delighted to win the Small to Medium Business Award and Creativity in Business Award on Friday. We are hugely grateful to all of our staff, brokers and customers for making Yutree what it is today. At 3 years old, Yutree is very proud of what it has achieved and we are delighted to be recognised locally with these awards. We look forward to many more years of trading ahead.
“Yutree is obviously a well-rounded business, with a clear vision, growing revenue and profits & extensive knowledge of its sector. For a relatively new business it is already performing extremely well in a crowded marketplace” – Judges’ comments at the Newmarket & District Chamber of Commerce business awards, 5th June 2015
And today we welcome Sara Culling to our underwriting team. Sara joins us from Saffron Insurance Brokers and she will be working within our underwriting business on our brokers’ new and existing policies so, you will be hearing from her once she is up and running.
Updated contact details for our underwriting team are as follows: