Employer's Liability Insurance?

Question

I've recently incorpated a company in UK (through a company incorporation service).

I've been told I'm required by law to subscibe to the Employer's Liability Insurance.

My situation is as follow:

- I have no employee, nor have the plan to hire anyone

- I am not selling any good or product

- I don't sell any services

Considering my situation, do I still have to subscribe to the Employer's Liability Insurance? I already asked the Companies House, but they've been of no help.

Answer 1

On the information you've provided I'd say the answer is no you don't.

But more intriguing is what your company actually does if it doesn't sell anything or provide any services. !

If it's just a holding company, then I still say no, you don't need EL cover.

Link to a full guide attached.

Answer 2

You do need Employer's Liability insurance.  As a director of the company, you are classed as its employee, therefore you need insurance.  When we set up our first limited company, my husband and I were the only people in the company but we still had to have the insurance.

The company is one legal entity, you are another.

Contact AXA for reasonable insurance quotes.  They have policies for people working from home and for working from premises.

Good luck with your documentary!

Answer 3

What would happen if you did not pay the insurance?  If you had an accident at work, you would have to sue your company for compensation.

If the company is wholly owned by yourself, with no borrowings, then I would suggest that self insurance is the best option.

Who told you to subscribe for this insurance?  - some laws are made for the blind!

Answer 4

In the US it is also required of any business.  There is a minimum for persons as yourself.  If you don't sell goods or products or services, what kind of company are you?  Do you just "think" and random people send you money?