Working with freelancers has many benefits, not least because you don’t have to worry about their tax or national insurance contributions, taking a huge administrative weight off your mind. But the procedures and legalities around whether you need employers’ liability insurance are far more complex and rely on several variables. Read on to find out if you need to insure your freelancers.
An employee, by definition, is a worker for whom you pay National Insurance and Income Tax. Seems simple, right? Where it gets complicated is when you are in control of some aspects of their health, safety and/or wellbeing.
If you freelancers work virtually and you never meet face-to-face, you probably won’t need employers’ liability insurance, however, there are exceptions:
- If you’ve hired the freelancer to work on a contract of service or an apprenticeship, they are considered an employee.
- If the freelancer has been hired to or borrowed by you.
- If they are working under your control or supervision on a labour-only basis.
- If they are a labour master (procuring and supplying labour) or are a person supplied by a labour master.
- If they are a volunteer
- If they are working under a work experience or training scheme.
It’s also worth considering that if you have physical meetings with your freelancers, or if they work from your premises or use your equipment, you have a legal duty of care to protect them and are responsible for their health and well-being whilst they are at work. In this case, if they are injured in the workplace, they can sue and you become liable for any compensation due to them. That’s where insurance comes in, protecting you from a potentially hefty bill.
Speak to one of our experts who will help you navigate the complexities of employers’ liability insurance for freelancers.
