Employers' Liability Insurance
Cover required for businesses with employees
Employers’ Liability Insurance is designed to protect your business if a past or current employee sues you for injury or illness suffered as a result of working for you. It covers the damages, compensation costs and legal fees.
Anyone who employs someone needs employers’ liability insurance, regardless of the business size or type of work carried out. Employers’ liability insurance is required even if employees are only part-time, volunteers, trainees, or apprentices.
Legally, you are required to get employers’ liability insurance as soon as you become an employer. Your policy must cover you for at least £5 million, and come from an authorised insurer.
If you use sub-contractors, you must be careful when considering their employment status for insurance purposes. Legally, they may be treated as ‘employees’ in some circumstances. Ask for professional advice if you are not sure.
You can be fined £2,500 for every day you are not properly insured. You can also be fined £1,000 if you do not display your employers’ liability certificate, or refuse to make it available to inspectors when they ask.