What You Need to Know About Employers Liability Insurance (ELI)
Our recommended partners at www.PayrollForNannies.co.uk provide payroll advice for parents and have created this content.
ELI is a legal requirement for all employers in the UK, which is set by the Employers Liability (Compulsory Insurance) Act 1969. As the employer, you must have insurance as soon as you employ a nanny.
Your policy must cover you for at least £5 million and come from an authorised insurer, as this will help you pay compensation if your nanny becomes ill or sustains an injury because of the work they do for you.
As an employer, you can be fined £2,500.00 every day for not being properly insured. You can also be fined a further £1,000.00 if you do not display your EL certificate or refuse to make it available to inspectors when they ask.
It is always advisable to check with your household insurers first before purchasing ELI as your household policy may cover you for this already.