Charities which employ staff are required to take out employers’ liability insurance (EL)
Under the law, all employers are required to have a minimum insurance cover of £5 million for injury or disease suffered or contracted by employees while carrying out their duties
A charity must buy employers’ liability insurance from an insurer that is an individual or company working under the terms of the Financial Services and Markets Act 2000. The Financial Services Authority maintains a register of authorised insurers
You may not need EL insurance if you only employ a family member or someone who is based abroad
You can be fined £2,500 every day you are not properly insured.
The charity (as an employer) must prominently display a certificate showing that a valid policy is in force and the minimum level of cover purchased.
You can also be fined £1,000 if you do not display your EL certificate or refuse to make it available to inspectors when they ask.
Check to see if your insurer is authorised by looking at the Financial Conduct Authority register or contact the Financial Conduct Authority