FAQs
Employers’ Liability Insurance FAQ
Legal requirements and coverage explained.
Employers’ Liability Insurance is a legal requirement in the UK for any business that employs staff — whether full-time, part-time, casual, temporary, apprentices, or even volunteers.
It covers the cost of compensation and legal fees if an employee becomes injured or ill as a result of their work.
Yes — under the Employers’ Liability (Compulsory Insurance) Act 1969, employers must have at least £5 million in cover (most policies provide £10 million as standard).
Failure to hold cover can result in daily fines of up to £2,500 per day.
Any business that:
- Employs staff (even one part-time assistant)
- Uses temps, contractors, or freelancers who work under their direction
- Has apprentices, trainees, or volunteers
- Pays wages, even informally
Examples:
- Builders with a small crew
- Accountants with a receptionist
- Shops with weekend staff
- Restaurants with chefs or servers
- Landlords employing a cleaner or handyman
- Workplace injuries (e.g. lifting injury, slip on wet floor)
- Illness caused by work (e.g. respiratory issues, RSI)
- Legal costs and compensation
- Claims made by non-employees (covered by Public Liability)
- Self-inflicted or criminal injuries
- Health and safety fines or penalties
- Contractors who are genuinely self-employed and not under your direction
Premiums vary based on:
- Number of employees
- Business activities and industry
- Previous claims history
- Turnover and payroll
Example: A small consultancy might pay £100–£200/year, while a construction firm could pay significantly more.
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If you have any questions or need further assistance with any of our insurance products please use the form and reach out to us.
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