Employers Liability Insurance and Freelancers

Employers’ Liability Insurance is a legal requirement for most businesses that employ staff.

But what happens if you only use freelance grooms on your yard? Do you still need it?

It’s a common question, and the answer can be complex, which may lead to many yards accidentally falling foul of the law..

It depends not on the job title, but on the working relationship between you and your grooms.

When Employers’ Liability Insurance is NOT usually required

If your groom is truly freelance, you normally won’t need Employers’ Liability Insurance. Signs of genuine self-employment include:

• The groom controls their own work and schedule.
•  The rate of pay is negotiated depending on their rates and your budget.
• They deliver services at multiple yards and clients.
• They can send a substitute to carry out the work for them.

In this case, the groom’s own liability insurance (which most professional freelance grooms carry) will typically cover them.

However, the reality on most yards is that the conditions described above do not apply, and so in the case of a serious accident and investigation the groom is likely/liable to be in fact classed as employed – and so Employers Liability Insurance would be required

When Employers’ Liability Insurance IS required

Even if your groom calls themselves freelance or self-employed, the law looks at the reality of how they work.

If the groom is effectively working as part of your team, you could be legally required to have cover.

Indicators of employment include:

• They work under your direction, control, or supervision.
• They work exclusively or mainly for your yard.
• They use your tools and equipment.
• They cannot provide a substitute.
• You set the working hours and rate of pay.

If any of these factors apply, the groom may be deemed an employee in law. And under the Employers’ Liability (Compulsory Insurance) Act 1969, you MUST have insurance in place.

But, what if the groom has their own liability insurance?

Even if a groom has their own liability insurance, that doesn’t necessarily remove the yard owner’s responsibility to have Employers’ Liability Insurance if, in practice, the groom is working under the control, direction, and supervision of the yard.

Here’s why:

• Personal liability insurance usually covers the groom for claims arising from their own mistakes. For example, if they damage a client’s property while mucking out.
• Employers’ Liability Insurance covers the employer if someone working for them is injured or becomes ill as a result of their work and makes a claim.

This shows why Employers’ Liability Insurance is about protecting the employer, not just the worker even if the worker also has their own liability insurance.

The final word? If a groom is working under your direction, doing tasks that would normally be done by an employee, assume you need employers’ liability insurance. If the groom holds their own liability insurance, but the law deems them an employee rather than a true freelancer, the yard owner is still legally obliged to have Employers’ Liability Insurance.

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