Employers' liability insurance

Employers’ liability insurance protects you and your business against the cost of any legal action and compensation claims that an employee may make if they have an injury or illness while at work.

As an employer, you’re responsible for the health and safety of your employees while they are at work. If an employee falls ill or injures themselves, your business may be held liable. Compensation claims could easily go into the tens of thousands, and for a small business, that could be enough to make you shut up shop. Having the right cover in place can help you avoid the worst.

As an employer, you will be liable for any injury sustained by an employee while at work.

Employers’ liability insurance provides protection for legal expenses such as contract disputes and debt recovery. It also covers personal accidents, for example, bodily injury, loss of hearing and paralysis.

Here are some examples where this cover could help:

• A member of staff falling off scaffolding and breaking a bone, needing time off work
• An office employee who trips up on a cable and breaks their wrist
• A sales assistant in a small clothing shop who falls off a step ladder and injures themselves

Accidents can happen at any time, so it’s important to make you sure you’re protected.

Employers’ liability insurance is a legal requirement for businesses with employees. This applies even if you only have one employee, or if you have employees on temporary contracts. Small businesses that only employ close family members may be exempt, if the business is not incorporated as a limited company.

• Without the correct policy, you could be fined up to £2,500 for each day you don’t have cover in place.
• You must also display your EL certificate or make it available if an inspector asks. If you don’t, you can face a fine of £1,000.

The law requires business owners to have a minimum amount of £5 million’s worth of cover in place. The cost of your premium will depend on a range of factors such as the number of employees you have, as well as the nature of the business.

We compare 100s of professions to get you the cover you need. The cost will be determined by the level of cover you require. It’s important to remember that the cheapest quote isn’t always the best one, it’s about finding the right cover for your business.

To compare quotes, we’ll need details about you (your name, date of birth, contact telephone number etc.) and your business (company/trading name, trading address). You'll also need to make sure you have the following information to hand:

• Details of your turnover and employee wage roll
• Details of any previous claims
• Your renewal documents from your current insurer (if you have one)

Depending on the type of business you have, you might need other types of liability insurance, such as:

• Public liability insurance
• Professional indemnity insurance
• Product liability insurance

We have a useful guide on "what kind of insurance does your small business require" that you can take a look at to gain a better understanding of what you might need.

Remember, people working for you don’t have to be paid or have a contract to be classed as employees. They might be subcontractors, part time or on work experience.