Question 1

What is employers’ liability insurance?

Accepted Answer

Employers’ liability insurance covers compensation and legal costs if an employee is injured or becomes ill because of their work for you. It’s a legal requirement under the Employers’ Liability (Compulsory Insurance) Act 1969 for almost every UK employer.

Question 2

What does employers’ liability insurance cover?

Accepted Answer

It covers compensation and legal costs if an employee is injured or made ill by their work. It’s legally required from the moment you employ anyone, with a £5 million statutory minimum.

Question 3

Is employers’ liability insurance a legal requirement?

Accepted Answer

Yes, for almost every business that employs anyone, whether full-time, part-time, temporary or casual. There are two narrow exemptions: sole director companies where the director owns 50% or more of the shares, and sole traders or partnerships employing only close family members.

Question 4

How much does employers’ liability insurance cost?

Accepted Answer

There’s no fixed price. It depends on how many people you employ, the type of work they do, your total payroll, your industry and your claims history. Manual trades typically cost more to cover than office-based teams.

Question 5

What is the minimum level of employers’ liability cover?

Accepted Answer

£5 million, set by law under the 1969 Act. In practice, most insurers offer £10 million as standard at little or no extra cost, so it’s worth checking what level your policy actually provides.

Question 6

What happens if I don’t have employers’ liability insurance?

Accepted Answer

The HSE can fine you up to £2,500 for every day you trade without adequate cover, plus up to £1,000 for not displaying your certificate. You’d also be personally liable for the full cost of any claim.

Question 7

Do sole traders need employers’ liability insurance?

Accepted Answer

Only if you employ someone else. A sole trader working alone doesn’t need it. The moment you take on staff, even casually or part-time, it becomes a legal requirement unless a specific exemption applies.

Question 8

Do I need employers’ liability insurance for subcontractors?

Accepted Answer

It depends on the relationship, not just their tax status. If you control how, when and where they work in a similar way to an employee, you may need cover even if they’re registered as self-employed. Genuinely independent contractors working their own way are usually excluded.

Question 9

Am I exempt as a sole director of my own limited company?

Accepted Answer

Possibly. If you’re the only employee of your limited company and you own 50% or more of the issued share capital, you’re exempt from the legal requirement. This exemption doesn’t apply to businesses with any other employees.

Question 10

Is public liability the same as employers’ liability?

Accepted Answer

No. Employers’ liability covers claims from your own staff. Public liability covers claims from customers, the public or anyone else who isn’t your employee. Most businesses that employ anyone need both.

Question 11

Does employers’ liability cover volunteers and work experience?

Accepted Answer

Often yes, because it depends on the nature of the relationship rather than whether someone is paid. If you direct their work in a similar way to an employee, tell your insurer so they’re included on your policy.

Question 12

How do I get my employers’ liability certificate?

Accepted Answer

Once your policy is in place, your insurer issues a certificate of insurance, which you must display where employees can see it, printed or electronically. We can usually get this to you the same day.

Question 13

Can I combine employers’ liability with other covers?

Accepted Answer

Yes. It’s commonly combined with public liability and other business covers into a single commercial combined policy, which usually works out simpler and often cheaper than separate policies.

What is employers’ liability insurance?

Which of these describes you?

Which of these describes you?

What the law requires

What the law requires

What happens if you don’t have it?

Are you exempt from employers’ liability insurance?

What could an employers’ liability claim cost you?

What could an employers’ liability claim cost you?

Your employers’ liability certificate

Just taken on your first employee?

Just taken on your first employee?

How much does employers’ liability insurance cost?

Cover often bought alongside employers’ liability

Why choose Insurance Revolution for employers’ liability cover?

How to get employers’ liability insurance

How to get employers’ liability insurance

Not sure if you’re exempt?

Not sure if you’re exempt?

Trusted by thousands of businesses across the UK

Trusted by thousands of businesses across the UK

Employers’ liability guides

Employers’ liability guides