ISM NEWS - PLI: Major New Benefit
03 October
2005
Members will be aware that one of the major benefits of membership of the
Society is automatic full Public Liability Insurance to £10 million. We are
pleased to be able to announce that with effect from 1 October, this insurance
now also includes employers’ liability insurance.
It may not be immediately obvious when or why ISM members might require such
insurance. But it can be surprising to discover the circumstances in which
someone can be regarded as an ‘employer’. With today’s flexible labour market,
it can be difficult to be categorical about whether a person is an employee or
an independent contractor. Someone under a contract of employment where the
employer deducts national insurance and income tax is obviously an employee. But
what about people who work on a temporary, freelance or casual basis – for
example, at summer schools or masterclasses?
As a rule of thumb, any person who is working under direct control or
supervision, for whom the majority of their materials and equipment are supplied
for them, and who generally works under the same conditions as would someone
under a contract of employment, would be considered as being ‘employed’.
Although it not always a requirement under the Act, most insurers will also
define voluntary workers and students on work experience as being ‘employed’.
All employers have a duty of care to protect the health and safety of their
employees during the course of their employment. Under the terms of the
Employers’ Liability (Compulsory Insurance) Act 1969, it is a requirement for
all employers to maintain a minimum level of liability insurance (Employers’
Liability) to protect against claims for compensation made by employees for
injuries or disease, which they have suffered as a result of their employment
and for which they believe their employer to be responsible.
Any member who finds themselves in a position where they might be regarded as
being an ‘employer’ can now rest assured that their statutory obligations in
respect of insurance for their ‘employees’ are fulfilled by the simple expedient
of belonging to the ISM.
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