Employers Liability Insurance for Care Homes and Domiciliary Care

The care sector presents unique and severe risks to staff, from manual handling injuries to exposure to infectious diseases. For care homes and domiciliary care agencies, complying with the Employers’ Liability (Compulsory Insurance) Act 1969 is not just a legal formality; it is vital to the survival of the business. Failing to properly insure your care staff can result in a £2,500 daily fine from the HSE, alongside devastating compensation claims that can force a care provider to close.

What Is It and Why Do Care Providers Need It?

Employers’ liability insurance covers the legal and compensation costs if a care worker is injured or falls ill due to their duties. Whether you run a residential care home or employ domiciliary staff who travel to clients’ homes, you must provide this cover. Due to the high-risk nature of the work—involving lifting patients and handling clinical waste—insurers and local authorities universally demand a £10M standard limit for care providers.

Key Factors in the Care Sector

1. High-Risk Environment: Manual handling and biohazards increase the likelihood of RIDDOR-reportable incidents.
2. HSE and CQC Oversight: Care providers face scrutiny from both the Care Quality Commission and the HSE. Both expect strict adherence to safety and insurance laws.
3. Severe Fines: A £2,500 daily fine applies for any period operated without valid cover.
4. Agency Staff: If you control agency workers on your premises, your employers’ liability policy must cover them.
5. Certificate of Insurance: The certificate of insurance must be clearly displayed in the care home office or made digitally accessible to travelling domiciliary workers.

Step-by-Step: Securing Compliance in Care

1. Assess All Roles: Ensure nurses, carers, cleaners, and administrative staff processed via HMRC PAYE are fully covered.
2. Choose Specialist Cover: Purchase a care-specific policy with a £10M standard limit to meet local authority contracting requirements.
3. Display the Certificate: Pin the certificate of insurance in the staff breakroom or provide a secure digital link for mobile workers.
4. Align with RIDDOR: Ensure all manual handling injuries are properly recorded and reported under RIDDOR.

Common Mistakes

• Excluding Domiciliary Staff: Believing that staff working in clients’ homes do not fall under the employer’s liability. They absolutely do.
• Overlooking Agency Nurses: Failing to ensure the care home’s policy covers temporary agency staff acting under the home’s direction.

Real-World Scenario

A domiciliary care agency employed 15 travelling carers but let their employers’ liability insurance lapse due to an administrative error. A carer suffered a severe spinal injury while assisting a patient without a proper hoist. Following the mandatory RIDDOR report, the HSE discovered the lapsed policy. The agency faced a £2,500 daily fine for the uninsured period and had to fund the £200,000 compensation claim directly, forcing the business into bankruptcy.

FAQ

Do local authorities require this insurance? Yes, practically all local authority care contracts require proof of a £10M standard employers’ liability policy.

Are travelling carers covered when driving to clients? Employers’ liability covers injuries arising from work duties. Driving requires separate business motor insurance, but injuries sustained inside the client’s home fall under employers’ liability.

Does this cover patient injuries? No, injuries to patients or residents are covered by Public Liability and Medical Malpractice insurance.

Key Takeaways

• Care providers must strictly adhere to the Employers’ Liability (Compulsory Insurance) Act 1969.
• A £10M standard limit is essential due to the high-risk nature of care work.
• Domiciliary workers and agency staff must be factored into your risk profile.
• The HSE enforces compliance with a £2,500 daily fine.

Author bio: Claire Ashford, Cert CII, specialises in clinical and care sector insurance compliance.