SME Insurance

skytl

Few Questions if anyone could give me some advice.

Currently running my own business as a sole trader and covered by public liability.

However I am thinking of reducing the work I'm doing myself and having someone work for me, an employee.

I would be planning on paying this person per job rather than a set weekly wage, i.e. if they work on 3 different jobs for me this week, they'll get paid for those.

Is it necessary by law to have employers liability in a situation like this?

The person working for me would be a friend helping out with my business and getting a bit of extra money himself rather than an employee that I'm hiring after an interview etc.

If things are going really well and I decide to bring in another one or two people then obviously employers liability would come in at that stage but for now is it needed or required by law?

Any advice appreciated, thanks

Gloomtastic!

You are an employer regardless so yes, you need employers liability. As a sole trader, it's not worth the risk not taking it out.

pedroeibar1

I agree that EL is a good idea even if the “friend’s “role could be construed as that of a sub-contractor. As a general rule, labour-only subbies should be treated as employees for insurance purposes because usually they work under your direction, do not provide their own material or tools and in the event of an accident will claim to be an employee. You also need to check that they would be covered under the PL policy while working for you.