Employers' Liability Insurance

Employers’ liability insurance can protect you and your business. It can cover the cost of compensation claims from employees due to illness or injury caused by their work due to employers’ negligence.

Insurance solutions from Gallagher

Insurance solutions from Gallagher

To provide you with Business Insurance Lloyds Bank works with Gallagher, one of the UK’s largest insurance brokers.

How does employer’s liability insurance work?

Employers’ liability insurance can pay the legal costs and compensation if an employee sues for a work-related injury or illness. It’s a legal requirement for almost every type of business to have this cover in place.

Employers’ liability insurance is offered as an add-on to any of the insurance policies listed below.

Public liability insurance

Public liability insurance

Public liability insurance protects a business in the event of and injury to a member of the public or damage to a member of the public's property.

Find out more about Public liability Insurance

Landlord insurance

Landlord insurance

Landlord insurance can protect landlords in the event of damage to property, theft, loss of rent or Injury claims if a person is injured due to their negligence.

Find out more about Landlord Insurance

Shop insurance

Shop insurance

Shop insurance covers retail businesses against claims from customers who have been injured or become ill from using the products sold. Or been injured or had property damaged due to your business.

Find out more about Shop Insurance

Office insurance

Office insurance

Office insurance protects a business from loss of earnings, compensation claims or reduced productivity caused by theft, damage, failure of equipment following an insured event or an injury to a third party due to your business.

Find out more about Office Insurance

Salon insurance

Salon insurance

Salon insurance protects the property, compensation claims  and equipment of a salon if it’s damaged or stolen due to an insured event, injury to a third party due to your business. It can also covers loss of earnings from times when the salon is unable to open as usual due to an insured event.

Find out more about Salon Insurance

Other products

Other products

Adding employers’ liability insurance to your cover means you are protected if employees are injured or fall ill due to their work.

Find out more about other insurance

Talk to an Insurance Specialist

Talk to an Insurance Specialist

Talk to an Insurance Specialist

Call 0345 377 0002

Lines are open 9am-6pm Monday to Friday excluding Bank Holidays.

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What does Employers’ Liability Insurance cover?

Employers’ liability insurance covers the costs of compensation and legal fees, if any member of staff falls ill or is injured onsite due to employers’ negligence.

Compensation payments may include:

  • Lost income.
  • Medical bills.

Is Employers' Liability a legal requirement? 

Employers’ Liability Insurance is a legal requirement for most business with employees. This can include:

  • Full-time and part-time employees.
  • Self-employed contractors you hire.
  • Temporary staff, apprentices, and volunteers.
  • People taking part in work experience or training schemes.

If you are required to have Employers’ Liability Insurance and do not have it, you can be fined:

  • Up to £2,500 for every day you do not have cover. 
  • £1,000 if you refuse to show your proof of cover certificate to an HSE inspector.

How much cover do I need?

UK law requires most employers to have at least £5 million of cover.

Some types of companies are exempt from this. Most policies offer up to £10 million of cover.

Businesses in high-risk sectors may wish to take out a higher level of protection to make sure any claims are covered.

Examples of Employers’ Liability Insurance claims

Employers’ Liability Insurance covers the costs of employee claims for illness or injury caused by their work due to employers’ negligence.

For example:

  • An employee is injured whilst operating machinery due to the employers’ negligence. This may include poor machine maintenance, protective equipment, or training.
  • An employee falls ill because of working at your business, such as through contact with toxins. This can be an employee who no longer works for you if their illness can be traced back to the negligence of your business when employed by you. If you had a policy while the employee was working for you, your business will be covered.
  • An employee trips on a frayed carpet while carrying a hot cup of coffee and gets burned.
  • An apprentice forgets to earth a cord and electrocutes themselves. In this case, the business is responsible if they have not given proper health and safety training.

When don’t I need Employers’ Liability Insurance?

  • If you are a family business and only employ close members of your family, you are exempt. This does not apply to family businesses that are part of limited companies.
  • Most public organisations, health service bodies, and some publicly funded companies are exempt.
  • Limited companies where you, as the owner, are the only employee. Provided you own 50% or more of the company’s share capital.

UK law requires most companies to have a policy that covers at least £5 million.

More details on your duties under the Employers’ Liability Act can be found here:

Keep in mind

Insurance covers are subject to the individual terms, conditions and exclusions of the insurer providing them. Always review the policy documentation supplied during the quote process to ensure you have the cover you need.

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Get in touch

Call 0345 377 0002

Lines are open 9am-6pm Monday to Friday excluding Bank Holidays

Existing customer

Contact numbers for all your queries including details for making a claim.

Important Legal Information

Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.

The products and services outlined on this site may be offered by legal entities from across Lloyds Banking Group, including Lloyds Bank plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc and Lloyds Bank Corporate Markets plc are separate legal entities within the Lloyds Banking Group.

Lloyds Bank is a trading name of Lloyds Bank plc, Bank of Scotland plc and Lloyds Bank Corporate Markets plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no.2065. Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC327000. Lloyds Bank Corporate Markets plc. Registered office 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 10399850. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278, 169628 and 763256 respectively.

We adhere to The Standards of Lending Practice which are monitored and enforced by the LSB: www.lendingstandardsboard.org.uk.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.