Employers Liability Insurance – Everything you need to know

Last checked and updated on 20 June 2022

If you are a business owner in the UK, it is important that you are aware of Employers Liability Insurance. This type of insurance protects your business from any legal claims made by employees who have been injured or become ill as a result of their job.

In this article, we will explain everything you need to know about this type of insurance, including who needs it, what it covers and where to get it. We will also discuss the cost and the different types available.

What is Employers Liability Insurance?

This insurance is designed to protect businesses from any legal claims made by employees who have been injured or become ill as a result of their job. The policy will cover the cost of any legal fees and damages that may be awarded to the employee.

Who needs it?

Employers Liability Insurance is a legal requirement for all businesses in the UK. If you employ any staff, including part-time, temporary or casual workers, you must have this type of insurance in place.

Is Employers Liability Insurance a legal requirement?
Yes, it is a legal requirement in the UK to have this type of insurance. If you employ any staff, including part-time, temporary or casual workers, you must have this type of insurance in place.

What does it cover?

Employers Liability Insurance covers the cost of any legal fees and damages that may be awarded to an employee if they are injured or become ill as a result of their job. The policy will also cover any legal costs incurred in defending a claim made by an employee.

Things that are usually not covered include:

  • Claims made by employees who are not covered by the policy (e.g. self-employed contractors)
  • Claims arising from injuries that occur outside of work (e.g. in the staff canteen or on a work trip)
  • Injuries caused by deliberate acts of an employee (e.g. if they start a fight at work)
  • Claims relating to injuries that occurred before the policy was in place

Where to get Employers Liability Insurance

You can get Employers Liability Insurance from most insurance providers. It is important to compare different policies before deciding which one is right for your business. Make sure that you read the policy documents carefully so that you are aware of any exclusions or limitations.

Cost of Employers Liability Insurance – how much is it?

The cost of Employers Liability Insurance will vary depending on the size and type of business. Generally, the larger the business, the higher the premium will be. Costs could range from a few hundred pounds to several thousand pounds per year.

What is the cheapest type of Employers Liability Insurance?

The cheapest type is usually provided by online insurers. The cost of the policy will depend on a number of factors, including the size and type of business. However, there are some tips you can follow to help reduce the cost of your insurance:

  • Shop around and compare different policies before buying
  • Pay annually in one lump sum to get a discount
  • Increase your excess to reduce your premium

It is important to compare the cover and excess levels before deciding which policy is right for your business.

Is Public Liability Insurance the same as Employers Liability?

No, Public Liability Insurance is not the same as Employers Liability Insurance. Public Liability Insurance covers claims made by members of the public who have been injured or become ill as a result of your business activities.

Do I need this cover as a sole trader?

Yes, you need employers liability insurance as a sole trader if you employ any staff, including part-time, temporary or casual workers. However, you may be exempt from this requirement if you are the only employee of your business and you have no other employees.

Certificate of Employers Liability Insurance explained

This is a document that proves you have the minimum level of cover in place. Your insurer will provide you with a certificate when you take out a policy. You must display a copy of the certificate where your employees can see it.

Frequently asked questions

Do I need to take out a policy if I am self-employed?

No, you do not need to take out a policy if you are self-employed. However, you will need to take out a policy if you employ any staff, including part-time, temporary or casual workers.

What is the minimum level of cover required by law?

The minimum level of cover required by law is £5 million.

How long does a policy last for?

Most policies last for twelve months, but some insurers may offer shorter or longer terms.

What is an excess?

An excess is the amount of money you will have to pay towards a claim. For example, if you have a £100 excess and you make a claim for £500, you will only receive £400 from your insurer.

Do I need to take out a policy if I am a limited company?

Yes, you need to take out a policy if you are a limited company. This is because limited companies are separate legal entities from their owners and directors.

I am a sole trader – do I need to take out a policy?

Yes, you need to take out a policy if you employ any staff, including part-time, temporary or casual workers. However, you may be exempt from this requirement if you are the only employee of your business and you have no other employees.

What is a certificate of Employers Liability Insurance?

This is a document that proves you have the minimum level of cover in place. Your insurer will provide you with a certificate when you take out a policy. You must display a copy of the certificate where your employees can see it.

I’ve been told that I need to take out a policy, but I’m not sure why?

Employers Liability Insurance is a legal requirement if you employ any staff, including part-time, temporary or casual workers. The minimum level of cover required by law is £5 million.

I’m not sure how much cover I need?

The minimum level of cover required by law is £5 million. However, it is important to compare the cover and excess levels before deciding which policy is right for your business.

How much does employers liability insurance cost?

The cost of Employers Liability Insurance depends on a number of factors, including the size and type of your business, the level of cover you require and the excess you are willing to pay.

What is the cheapest type of Employers Liability Insurance?

The cheapest type is a policy with a low level of cover and a high excess. However, it is important to compare the cover and excess levels before deciding which policy is right for your business.

Is Public Liability Insurance the same as Employers Liability?

No, Public Liability Insurance is not the same as Employers Liability Insurance. Public Liability Insurance covers claims made by members of the public who have been injured or had their property damaged as a result of your business activities. Employers Liability covers claims made by your employees who have been injured or who have contracted a disease as a result of their work.

Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.