Why do landlords need Employers’ Liability?
If you have employees, contractors, casual workers or temporary staff, you’re usually required by law to take out Employers’ Liability cover, to deal with any claims from employees who’ve been injured or become seriously ill as a result of working for you.
As a landlord this could mean cleaners, handymen, clerical staff or gardeners. Even if they are on short-term contracts, you'll usually be required to have Employers’ Liability insurance.
What is Employers’ Liability insurance?
Employers’ Liability insurance protects you against the cost of compensation claims arising from employee illness or injury, sustained as a result of their work for you. It is a legal requirement if your business employs one or more people, with fines of up to £2,500 for every day that appropriate cover is not in place.
The Employers' Liability (Compulsory Insurance) Act 1969 (ELCA) makes it obligatory for employers to have Employers' Liability insurance. You can download a full guide to the ELCA here. This guide includes details of what counts as an 'employee' and organisations that are exempt from the ELCA. - for example, health service bodies and some family businesses.
Do I need Employers’ Liability cover for family members?
Immediate members of your family who work for you don’t count as employees for insurance purposes, this does not apply to family businesses which are incorporated as limited companies.
Do I need Employers’ Liability insurance if I don’t have any employees?
If you don’t have any employees you don’t need Employers’ Liability insurance (unless a contract explicitly requires it). However, make sure you fully understand how ‘employee’ is defined for the purposes of the legislation. If your company has more than one director or if you employ a certain type of subcontractor, you may be required to have Employers’ Liability insurance.
If you’re not sure if you need Employers’ Liability insurance, check the legislation or seek professional advice.
How do I get Landlord Employers’ Liability cover?
Landlord Employers’ Liability insurance is an optional cover with landlord insurance. You can get a landlord insurance quote online or speak to specialist insurance advisors on 0345 337 0006
Choosing the right cover means less stress, upset and hassle for both you and your tenants. Make sure you’re properly protected with landlord insurance.
|Type of cover||What is covered|
|Buildings||If your property is damaged and has to be repaired or rebuilt due to an insured event such as vandalism or storms.|
|Landlord’s Contents||Household items that you have provided for your tenants, such as soft furnishings or appliances, if they are damaged or destroyed by an insured event.|
|Loss of Rent||Your cash flow is protected if after an insured event such as a flood or fire, your tenants stop paying rent or have to move out. If your tenants do have to move out, the costs of arranging alternative accommodation on their behalf is also covered.|
|Accidental Damage||Accidental damage to the building and its fixtures and fittings. For example, if you or your tenants accidentally smash a window or drop something and crack a sink.|
|Subsidence, Landslip and Heave||Damage to your property as a result of a movement in the ground supporting your property.|
|Property Owner’s Liability||You are protected if a person is injured or if there is damage to their property as a result of your negligence.|
|Legal Expenses||Your legal expenses in proceedings, such as contract disputes, debt recovery and evicting squatters.
Accidental Damage is not available for contents cover.
Get a competitive priced quote from one of the UK’s leading insurers. If you rent between 1 and 5 properties.
*Online policy is underwritten by RSA Insurance Group.
Please check you have all the cover you need by reading the policy documentation carefully (this will be provided during the quote process).
If you are unsure or the cover you need, or have more than 5 properties or complex requirements, call on:
(Lines available from 9am to 5pm Monday to Friday)
Commercial Landlord Insurance is brought to you by Arthur J. Gallagher Insurance Brokers Limited, one of the UK’s biggest insurance brokers. Their specialist advice will help you decide on the cover you need, and they’ll search among their panel of leading insurers to find you that cover at the right price. Cover details may vary based on insurer.
Whether you ask for a landlord insurance quote online (1-5 properties), need advice or have complex requirements (6+ properties), you'll need the following details to hand:
Standard home insurance won't cover the extra risks you face as a landlord. For example, if a tenant is injured by a falling roof tile at your property or if a flood means your tenants have to move out for a while at your expense.
Please check you have all the cover you need by reading the policy documentation carefully (this will be provided during the quoting process).