How do temporary staff affect my business insurance?
Adding temporary staff to your insurance policy doesn’t have to be the complicated process that it’s made out to be. Many employers see adding temporary staff to their policy as a complex grey area in the recruitment world, often opting to go with permanent recruitment solutions to avoid the hassle.
Read further to find the answers your business needs when you’re considering adding a temporary member of staff to your team.
How do temporary staff affect my business insurance?
Adding temporary staff to your business doesn’t actually require that much hassle. Like all changes to your business, you should always inform your insurance provider with detailed information surrounding new employees or changes to your company’s output or work. Failing to update your insurance policy could mean that your insurance policy is invalidated in the event of a claim.
The type of business insurance cover you already possess will determine any changes that need to be made to your insurance premiums. Employer’s liability insurance is a legal requirement in the UK, meaning that adding a temporary employee to your policy should be fairly simple.
Some insurance providers automatically include temporary employees in their employer’s liability cover guidelines, but some providers will need to be informed of the adjustments.
This is because with new employees come additional risk – in the eyes of the insurance provider, that is. If you’re unsure about the terms and conditions of your insurance plan, it’s worth contacting your provider to find out if you’re covered.
Be Wiser Business Insurance offers business insurance quotes that provide clarity and adequate cover for all of your company’s needs. We provide advice and expert guidance when you want to add temporary or permanent staff to your company’s insurance plan.
Who should I class as a temporary employee?
The question of how to define a temporary employee can sometimes be a grey area within the trade and construction industries. This is because the industry is made up of numerous sole traders, labour subcontractors and other agency workers who all have many chains of employment to answer to.
Although irrelevant to your insurance policy, a general rule of thumb when attempting to determine who is a temporary employee of your business is to work out who pays them and whether you’re getting taxed on them.
If you’re paying them, then you need to add them as a temporary worker to your insurance policy. Don’t take the risk of not adding them; if you’re unsure about any of your employee insurance, it’s worth contacting your provider for further information.
Adding a temporary employee to your business insurance policy can mean an increase in your yearly premiums; however, many insurance providers incorporate additional and temporary employees into their initial employer’s liability cover upon your initial policy agreement.
Always remember that insurance cover for your employees is a legal necessity in the UK, and failure to abide by this could mean prosecution. Fortunately, sourcing corporate insurance can be straightforward; for example, you can call Be Wiser on 0333 999 0802.
