Employers Liability Insurance


Employees are an asset to any business; they are its lifeblood and keep it operating, sometimes in challenging circumstances. If you have employees, then you need to ensure they are adequately protected by holding employers’ liability insurance, it is a legal requirement and you can be fined if you do not.

Our Employers Liability Insurance Policies Protect Businesses from Risks Including:

  • Legal and compensation costs if you are sued by a member of your staff if they believe their work has caused them injury or illness
  • Insures any person working for you in connection with your business even if they are voluntary help or self-employed
  • Claims for injuries or illness caused by terrorism are also covered up to a limit of £5 million
  • It can be added to your public liability insurance which covers compensation you have to pay a client, contractor or member of the public due to accidental injury or property damage

What is Employers’ Liability Insurance?

Employers have a responsibility for the health and safety of their employees whilst they are at a place of work. Employers’ liability insurance will provide protection for your current employees should they become injured at work, as well as former employees that may develop an illness that is directly related to business activities whilst employed by you. The insurance policy will be utilised should they decide to make a compensation claim against you. There may be exceptions to this, for example, if the injury was as a result of a motor accident, as other insurance policies will cover these occurrences. However, just like employers liability insurance, motor insurance is also mandatory.

What is the Penalty for not Having Employer’s Liability Insurance?

It is illegal to fail to hold insurance cover for your employees and you run the risk of having to personally pay out for any compensation claims against you or your business. Not only that, the Health and Safety Executive (HSE) is responsible for law enforcement in this area. Their inspectors can arrive at your premises unannounced and request to see your insurance certificates. If you fail to hold insurance cover or have inappropriate cover you can be fined £2,500 a day for each day that you fail to meet the requirement. Even if you have adequate insurance but are unable to produce the certificates, you can still be fined up to £1,000.

Do I Need an Employer’s Liability Policy for all My Employees?                                                                       

If you have employees that are usually based in England, Scotland or Wales (also including offshore installations such as oil and gas rigs) you will need employers’ liability insurance. However, if some, or all of your employees are usually based outside of the previously mentioned jurisdictions, then you will not require the insurance. ‘Usually‘ in this case has a strict meaning, if your employees come back into Great Britain for 14 or more consecutive days, or 7 or more for offshore installations, then they will be classed as UK based and will require insurance.

Caution should be taken though, it is likely that there will be equivalent or similar rules in place in most countries in which your employees operate. In order to comply with the corresponding laws of those countries, you should make detailed enquiries into the type of insurance you will need and the level of cover to hold. As a responsible employer you should also consider an appropriate insurance policy from a UK based insurer, even if it is not a requirement, it is always important to protect your employees!

Employer’s Liability Insurance from Insure 24-7 Covers you for;

  • All permanent employees (who have National Insurance contributions and income tax deducted from their salary, whose location, hours and conditions of their work are controlled by their employer and who cannot be replaced by their employer if they are unable to work)
  • Contracted, casual and seasonal employees
  • Labour-only subcontractors
  • Temporary staff, including students and people on work placements
  • Volunteers, advisers, referees and marshals

Who can I get Employer Liability Insurance from?

You will need to hold cover from an insurer that is authorised and regulated by the Financial Conduct Authority, that may sound restrictive, but there are currently 877 insurers that have the necessary authority, many of which Insure 24-7 have a relationship with.

Are there Exclusions to my Employer Liability Policy?

Typically, you will take out an insurance policy that is bespoke to your business, this will allow the insurer to assess you the risk of your employees being injured and the cost of any future potential claims. The higher the risk, the more expensive your policy will be, which stands to reason. However, you should never be tempted to artificially make your business seem a better risk than it actually is. As any compensation paid will be for third parties, your insurer can not refuse to pay, however, if you have lied or mislead the insurer in any way, this may give them recourse to sue you personally for any compensation paid out, you could also open yourself up to fines being levied for being inappropriately insured.

How much Cover will I need for my Business?

Not only is the insurance itself compulsory, so is the minimum cover. You will need at least £5 million although most insurers offer cover starting from £10 million. Insure 24-7 will work with you to look at your potential risks so that an appropriate policy can be sourced.

Do I need to Inform Employees of my Liabilities Cover?

When you receive your insurance certificate it must be clearly displayed in an area of your business that your employees have access to. The certificate must show the business name and the level of cover taken out. In an effort to move with the times, since October 2008, companies have been allowed to display the certificate electronically, many opting to utilise an intranet or similar

Does the Law Regarding Employer Liability Insurance Apply to me?

In most cases, yes. However, there are some exclusions:

  • Public organisations, government departments and agencies, local authorities and nationalised industries. These entities will typically be self-insured.
  • Family businesses where all employees are close family members, for example, mother, father, brother, sister, son or daughter. Although, even if only 1 employee does not meet this criterion, then you will need insurance. You will also need insurance if your company is registered and limited, even if every employee is a close family member.
  • If you are a sole trader or if there is only 1 employee that holds 50% or more of the share capital

Get A Quote For Employers Liability Insurance

Get a great deal on an employer’s liability insurance quote online now with Insure 24-7, not only because it’s a legal requirement for your business, but also to protect your business from any unexpected circumstances. Give us call on 0330 555 6000.