Employers Liability Insurance
Employers Liability Insurance
Employers’ Liability Insurance protects business owners if a claim is made by an employee who has been injured or fallen ill due to work. Essentially, if you have someone working for you, you must have Employers’ Liability.
It is impossible to predict or prevent all accidents from occurring and the Health and Safety of your employees is of paramount importance. By ensuring you follow guidelines and have the correct insurance in place, you can protect your business from a serious claim.
What does Employers’ Liability Insurance Cover?
Employers’ Liability Insurance will help pay for compensation and cover the legal cost of defending and settling claims made. Policies not only include permanent employees, but also seasonal and temporary employees, work placements, and labour-only subcontractors.
It is important to note that individuals can still make claims even after they have stopped working for your business, for example if symptoms show months after their contract has ended. If a company has gone out of business, it may still be possible to make a claim for compensation directly through the insurer.
Do I need Employers’ Liability Insurance?
Employers’ Liability is a legal requirement as per the Employers’ Liability (Compulsory Insurance) Act 1969. You must have cover for at least £5 million and your policy must come from an FCA (Financial Conduct Authority) registered insurer, though most policies offer cover for at least £10 million. For every day that you are not properly insured, you can be fined £2,500. You can also be fined £1,000 if you do not display your Employers’ Liability certificate or refuse to make it available to inspectors.
There are a small number of businesses who are not legally obliged; most public organisations such as the Armed Forces, some organisations financed by public funds, family businesses that only employ close members of the family, and sole-employee businesses. For more information on exemptions, the HSE has a published list.
How much does Employers’ Liability Insurance cost?
Like many policies, Employers’ Liability cost depends on several factors such as:
- Industry of the business
- Number of employees
- Your claims history
High-risk professions, such as Construction or Manufacturing, carry higher premiums. In addition, the cost does not depend on what type of employees you have, but rather how many there are.
Why Choose Konsileo for your Public Liability Insurance
Our Brokers have years of experience dealing with a wide variety of businesses and their unique Liability needs. Our access to a multitude of markets and products means that we can tailor policies for each individual business, regardless of size or sector.
Get In Touch Today
Additional Products Available
Frequently asked questions
Employers' Liability Insurance protects businesses if an employee becomes ill or is injured because of their work and makes a compensation claim. The policy helps cover legal costs, compensation payments, and associated expenses. In the UK, most businesses that employ one or more people are legally required to have Employers' Liability Insurance with a minimum cover of £5 million, although many insurers provide £10 million as standard.
Yes. Under the Employers' Liability (Compulsory Insurance) Act 1969, most UK businesses that employ staff must have Employers' Liability Insurance. Failure to hold valid cover can result in significant fines. Some limited exemptions apply, such as certain family businesses or public organisations, but the majority of employers are legally required to have the policy in place.
Employers' Liability Insurance typically covers claims arising from workplace injuries or illnesses suffered by employees during the course of their employment. This can include compensation payments, legal defence costs, medical expenses where applicable, and claims relating to accidents, occupational diseases, or unsafe working conditions. Cover varies between insurers, so it's important to review the policy wording.
Businesses that employ staff need Employers' Liability Insurance. This includes full-time employees, part-time workers, apprentices, temporary staff, and, in many cases, labour-only subcontractors. Even if you only employ someone on a casual basis, you may still be legally required to have cover. If you're unsure whether your business needs Employers' Liability Insurance, seeking professional advice can help ensure compliance.
If your business is legally required to have Employers' Liability Insurance but fails to do so, you could face fines of up to £2,500 for every day you are uninsured. You may also receive additional penalties for failing to display or provide evidence of your insurance certificate when requested by the Health and Safety Executive (HSE). Having the correct cover helps protect both your business and your employees.
The cost of Employers' Liability Insurance depends on several factors, including the size of your business, the number of employees, your industry, payroll, claims history, and the level of cover required. Businesses in higher-risk sectors, such as construction or manufacturing, typically pay more than those operating in lower-risk office-based environments.