Employers Liability Insurance
Employers’ Liability Insurance Quotes
Protect your business against employee claims with the right cover.
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What Is Employers’ Liability Insurance?
Employers’ liability insurance protects your business against compensation claims from employees who suffer a work-related injury or illness. It is a legal requirement for most UK employers under the Employers’ Liability (Compulsory Insurance) Act 1969.
The minimum level of cover required by law is £5 million, though most policies provide £10 million as standard. Your policy pays legal defence costs and compensation awards if a current or former employee makes a claim.
Without this cover, you would need to pay these costs from your own funds. A single serious injury claim can exceed £1 million.
How To Compare Employers’ Liability Insurance Quotes
Comparing employers’ liability insurance quotes through SimplyQuote takes minutes and helps you find the right cover at a competitive price.
Enter your business details
Provide your industry type, number of employees, and annual turnover. This helps insurers calculate your risk level and tailor your quotes.
Review your quotes
Results appear side by side so you can compare cover levels, excess amounts, and monthly premiums. Look beyond the headline price to check what each policy includes.
Check policy details
Read the policy wording carefully, paying attention to cover limits, exclusions, and any conditions you must meet. Make sure the insurer is authorised by the Financial Conduct Authority.
Buy your policy online
Once you have found the right policy, you can buy it online and receive your certificate of insurance immediately. You must display this certificate at each of your business premises.
What Does Employers’ Liability Insurance Cover?
Employers’ liability insurance covers the costs of compensation claims and legal fees when an employee is injured or becomes ill because of their work.
Workplace Injuries
Your policy covers claims from employees who are physically injured during work activities. This includes injuries caused by faulty equipment, slips and falls, or unsafe working conditions.
A builder who falls from scaffolding due to a missing guardrail would have grounds for a claim. An office worker who trips on a damaged carpet tile would also be covered.
Occupational Illnesses
Employees who develop illnesses linked to their working conditions can claim against you. Common examples include hearing loss from prolonged noise exposure and respiratory diseases from dust or chemical contact.
Legal Defence Costs
If an employee takes legal action, your insurer covers solicitor fees, court costs, and expert witnesses. These costs can run into tens of thousands of pounds even if the claim is unsuccessful.
Compensation Payments
Your policy pays any compensation awarded by the court to your employee. This may include loss of earnings, medical expenses, and damages for pain and suffering.
Former Employee Claims
Employers’ liability insurance also covers claims from ex-employees. If a former worker develops an illness years after leaving your business, they can still claim if the condition is linked to their time working for you.
| Type of Claim | What It Covers | Example |
| Workplace injury | Physical injuries during work | Fall from height, equipment accident |
| Occupational illness | Diseases caused by working conditions | Asbestos exposure, hearing loss |
| Legal costs | Solicitor fees and court expenses | Employee negligence lawsuit |
| Compensation | Court-awarded damages | Loss of earnings, medical bills |
| Ex-employee claims | Historic workplace incidents | Illness develops years after exposure |
Is Employers’ Liability Insurance A Legal Requirement?
Yes, employers’ liability insurance is a legal requirement for most businesses in the UK that employ one or more workers.
The Employers’ Liability (Compulsory Insurance) Act 1969
The Employers’ Liability (Compulsory Insurance) Act 1969 requires every employer carrying on business in Great Britain to hold at least £5 million of employers’ liability cover. This applies to any business that employs staff, deducts National Insurance from their wages, and controls how and where they work.
Penalties for Non-Compliance
The Health and Safety Executive enforces compliance and can fine you up to £2,500 for every day you operate without cover. You can also be fined up to £1,000 for failing to display your certificate of insurance.
Who Is Exempt?
Sole traders with no employees do not need employers’ liability insurance. Family-run businesses that only employ close relatives are also exempt.
Directors of limited companies who own more than 50% of shares and have no other employees are not required to hold cover. Public bodies such as government departments have separate arrangements.
Who Needs Employers’ Liability Insurance?
Any business that employs staff in the UK needs employers’ liability insurance, regardless of whether workers are full-time, part-time, or temporary.
Full-Time and Part-Time Employees
All employees on your payroll must be covered, whether they work full-time or part-time hours. This includes staff on fixed-term contracts and those on probationary periods.
Temporary and Casual Workers
You need cover for temporary workers, agency staff you supervise directly, and casual workers. This includes seasonal staff and anyone on a zero-hours contract.
If you hire tradesmen such as scaffolders who work under your direction, they may be classed as your employees for insurance purposes.
Apprentices and Trainees
Apprentices, work experience students, and trainees must all be covered by your employers’ liability policy. This applies even if they are unpaid.
Volunteers
Most employers’ liability policies cover volunteers who work for your business. Check your policy wording to confirm, as some insurers treat volunteers differently.
Charities and community organisations that rely on volunteers should pay particular attention to this. A volunteer injured while carrying out tasks for your organisation could still make a claim.
What Is Not Covered By Employers’ Liability Insurance?
Employers’ liability insurance does not cover every type of claim your business might face.
Third-Party Claims
Claims from members of the public, customers, or visitors are not covered by employers’ liability insurance. You need public liability insurance for third-party injury and property damage claims.
Self-Employed Contractors
Contractors who are genuinely self-employed and have their own insurance are not covered by your policy. However, if HMRC considers them your employees, you may still be liable.
Non-Work-Related Injuries
Injuries or illnesses that are not connected to the employee’s work are excluded. Your policy only covers conditions that arise from workplace activities or environments.
Deliberate Acts
If an employee deliberately injures themselves or causes harm through gross misconduct, your insurer may refuse the claim. Policies also exclude claims arising from criminal activity.
What Is The Difference Between Employers’ Liability And Public Liability Insurance?
Employers’ liability insurance covers claims from your employees, while public liability insurance covers claims from members of the public.
Key Differences
Both policies protect your business against compensation claims and legal costs, but they apply to different groups of people. The table below summarises the main differences.
| Feature | Employers’ Liability | Public Liability |
| Who it covers | Your employees | Members of the public |
| Legal requirement | Yes (most employers) | No (often contractually required) |
| Minimum cover | £5 million | No legal minimum |
| Typical cover level | £10 million | £1 million to £5 million |
| Common claims | Workplace injury, illness | Customer injury, property damage |
Do You Need Both?
Most employers who interact with the public need both policies. Employers’ liability is a legal requirement, while public liability is often required by clients and contracts.
How Does An Employers’ Liability Insurance Claim Work?
An employers’ liability claim follows a formal process that can take several months to resolve, depending on the complexity of the case.
Report the Incident
Record the details of the injury or illness in your accident book as soon as it happens. If the incident is serious, you must report it to the HSE under RIDDOR regulations.
Notify Your Insurer
Contact your insurance provider as soon as you become aware of a potential claim. Early notification gives your insurer time to investigate and prepare a response.
Investigation and Settlement
Your insurer will appoint a solicitor to handle the case and investigate the circumstances. The claim may be settled through negotiation or, if necessary, through the courts.
Most employers’ liability claims take between twelve and twenty-four months to resolve. Complex cases involving long-term illness or disputed liability can take several years.
Worked Example
A warehouse worker injures their back lifting heavy boxes without proper manual handling training. They claim £25,000 for lost earnings and £5,000 for medical treatment.
Your insurer covers the £30,000 settlement plus £10,000 to £15,000 in legal fees. Without employers’ liability insurance, your business would need to pay the full amount.
How Much Does Employers’ Liability Insurance Cost?
The average cost of employers’ liability insurance for a small UK business is between £5 and £25 per month, depending on your industry, the number of employees, and your claims history.
Average Prices by Industry
A plasterer with two employees might pay around £8 per month. A construction firm with 20 workers could pay £300 per month or more due to the higher injury risk.
According to the Association of British Insurers, premiums are calculated based on your total payroll and the level of risk associated with your industry.
Office-based businesses with fewer than five employees can often find cover from around £5 per month. Higher-risk sectors such as construction and manufacturing typically pay £15 to £40 per month or more.
What Affects Your Premium?
| Factor | Lower Premium | Higher Premium |
| Industry | Office-based (low risk) | Construction (high risk) |
| Employees | 1 to 5 staff | 20+ staff |
| Annual turnover | Under £100,000 | Over £500,000 |
| Claims history | No previous claims | Recent claims |
| Cover level | £5 million minimum | £10 million or higher |
How To Save Money On Employers’ Liability Insurance
There are several ways to reduce your employers’ liability insurance premiums without cutting the level of cover you need.
Improve Workplace Health and Safety
Insurers reward businesses with strong safety records and documented risk management practices. Regular risk assessments and staff training can help reduce your premiums over time.
Bundle Your Business Insurance
Buying employers’ liability as part of a wider business insurance package can save you money. Many insurers offer discounts when you combine multiple cover types into a single policy.
Increase Your Voluntary Excess
Choosing a higher voluntary excess reduces your monthly premium. Make sure you can afford to pay the excess amount if you need to make a claim.
Compare Quotes Annually
Do not auto-renew without checking the market first. Comparing quotes each year ensures you are still getting competitive cover for your business.
Frequently Asked Questions
The minimum level required by law is £5 million. Most policies offer £10 million as standard, and some industries may require higher limits.
Yes, the HSE can fine you up to £2,500 for every day you operate without employers’ liability insurance. You can also be fined up to £1,000 for not displaying your certificate.
No, businesses that only employ close family members are exempt from the legal requirement. However, you may still want cover to protect against unexpected claims.
Yes, most employers’ liability policies include cover for volunteers. Check your policy wording to confirm, as some insurers may apply different terms.
Yes, employers’ liability insurance premiums are an allowable business expense for tax purposes. You can deduct the cost from your taxable profits.
Yes, you must display a copy of your employers’ liability certificate at each business premises. Failing to do so can result in a fine of up to £1,000.
Your employers’ liability insurance covers claims from former employees. As long as they can prove their injury or illness occurred during their time working for you, they can make a claim.
Yes, employees who work from home are covered by your employers’ liability insurance. Your policy protects them against work-related injuries or illnesses regardless of where they carry out their duties.
The Employers’ Liability Tracing Office (ELTO) is a database that records employers’ liability insurance policies. It helps former employees trace their employer’s insurer when making a claim for a historic workplace injury or illness.
It depends on their employment status. If you control how, where, and when a subcontractor works, they may be classed as an employee and need to be covered by your policy.
Most policies run for 12 months and must be renewed annually. You should compare quotes before renewing to make sure you are still getting the best deal.
Employers’ liability insurance covers claims from your employees for workplace injuries and illnesses. Professional indemnity insurance covers claims from clients who suffer financial losses due to your professional advice or services.
