Employers' Liability Insurance

Employers’ Liability Insurance is designed to help with legal costs and compensation if an employee claims they’ve been injured or become ill because of their work - and your business is found to legally be responsible (liable).

It’s a legal requirement for most UK businesses that employ staff. This can include full-time, part-time and temporary employees, as well as some contractors, apprentices and volunteers. There are some exceptions, so check the current government guidance if you’re unsure whether the requirement applies to your business.

You’ll usually need at least £5 million of cover from an authorised insurer, although most policies - including ours - provide £10 million. 


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Most UK businesses that are required to have Employers’ Liability Insurance need at least £5 million of cover from an authorised insurer. We provide £10 million as standard.

The requirements that apply to your business will depend on your circumstances, so you should always check current government guidance if you’re unsure.

You may do. Requirements for Employers’ Liability Insurance can be based on your relationship with the people who work for you, rather than the size of your business or the number of people you employ.

So even if you employ just one person, you may be legally required to have cover. This can also apply to some temporary workers, apprentices, volunteers and contractors.

Some businesses and organisations may not need Employers’ Liability Insurance.

Examples can include:

• limited companies where the owner is the only employee and owns 50% or more of the share capital,
• certain public bodies and organisations,
• family businesses that only employ close family members, as long as they’re not operating as limited companies.

Keep in mind that this isn’t an extensive list. Check your policy documents to understand the cover, limits and exclusions that apply. 

Whether an exemption applies depends on your circumstances. You should check the current government guidance before deciding not to arrange cover.

If you’re legally required to have Employers’ Liability Insurance and don’t have right cover in place, you could be fined up to £2,500 for each day you’re uninsured.

You could also be fined £1,000 if you don’t display your Employers’ Liability certificate or make it available to an inspector when asked.

Without appropriate cover, your business may also have to meet the full costs of an employee claim.

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It can do, as some contractors may need to be included within your Employers’ Liability policy.

There’s lots of factors when it comes to whether you need Employers’ Liability cover for a contractor, like:

• your working relationship
• how much control you have over their work
• if you provide their equipment
• if they can work for other businesses at the same time as working for you.

The main difference is who makes the claim.

Employers’ Liability Insurance can help with legal costs and compensation if an employee claims they’ve been injured or become ill because of their work and your business is found liable.

Public Liability Insurance deals with certain claims from people outside your business, such as customers, visitors or other members of the public, and can cover claims related to injury or property damage because of your business activities.

Employers’ Liability Insurance is legally required for most UK businesses with employees. Public Liability Insurance generally isn’t required by law.

It can. A former employee may make a claim after they’ve stopped working for you, particularly if a work-related illness or injury only becomes apparent later.

If the claim relates to a period when you had Employers’ Liability Insurance in place, that policy may respond to the claim. Keep records of your Employers’ Liability Insurance so you can identify the relevant insurer if a former employee makes a claim after their employment ends.