FAQs from YOUR Insurance.
Employers’ Liability Insurance at a glance
If someone working for you becomes ill or injured as a result of
their work activities you may face a claim. Depending on the
seriousness of the injury, the cost of claims related to employer
health and safety responsibilities can be very high. That’s why it
is vital for every employer to consider Employers’ Liability
Who needs Employers’ Liability Insurance?
If one or more other people are helping your business to
function (even if you are not paying them a wage) then you have a
responsibility for their health and safety whilst at work. A
written contract of employment does not need to be in place as
anyone working for your business is still deemed to be an employee.
This includes part-time workers, students on work experience,
sub-contractors and volunteers.
In these instances (with the exception of some family
businesses), you are an employer in the eyes of the law and
therefore you need to take out Employers’ Liability Insurance.
What does Employers’ Liability Insurance protect against?
Employers’ Liability Insurance protects your business from
claims for compensation from employees. An employee may claim
against you if they are hurt or injured whilst working for you.
Former employees can also claim against you if they believe they
have become ill as a result of working for you.
Is Employers’ Liability Insurance compulsory?
In most cases, if you have one or more employee, it is; however
there are some exceptions as shown below. You should check with one
of our business insurance specialists to see if these apply to
You may be exempt from having Employers Liability insurance in
the following instances:
- All of your business' employees are close relatives and the
business itself is not incorporated as a limited company.
- The owner is the sole employee, and owns at least 50% of the
company's issued share capital.
How much Employers’ Liability cover will I need?
The minimum legal level of Employers’ Liability Insurance
required by a business is £5 million however, depending on the
individual business risks and liabilities, more may be required. If
you don’t have adequate cover in place, you risk a substantial
- Third party property damage
- Personal injury
- Legal or medical fees may also be covered