Employers’ Liability Insurance
Protect Your Business and Meet Your Legal Responsibilities
If your business employs staff, Employers’ Liability Insurance is one of the most important types of business insurance you may need.
It can protect your business against compensation claims arising when employees suffer an injury or illness as a result of their work.
At Edison Ives, we help businesses throughout the UK arrange Employers’ Liability Insurance suited to their workforce, business activities and individual risks.
Request an Employers’ Liability Insurance Quote
Whether you’re employing your first member of staff, reviewing your existing insurance or taking on a new contract, our team can help.
Tell us about your business, employees, payroll and activities, and we’ll explore suitable insurance options.
What Is Employers’ Liability Insurance?
Employers’ Liability Insurance is designed to protect businesses against certain compensation claims from employees who suffer injury or illness arising out of their employment.
If an employee alleges that your business was responsible for their injury or illness, the resulting claim could involve compensation payments and legal expenses.
Subject to policy terms, Employers’ Liability Insurance can cover your legal liability for eligible claims and associated defence costs.
It is different from Public Liability Insurance, which generally concerns claims from members of the public and other third parties.
Is Employers’ Liability Insurance a Legal Requirement?
Yes. Most UK businesses that employ staff are legally required to hold Employers’ Liability Insurance.
Under the Employers’ Liability (Compulsory Insurance) Act 1969, most employers in Great Britain must arrange insurance with a minimum cover limit of £5 million from an authorised insurer, subject to exemptions.
Many insurers offer £10 million of cover as standard, although the appropriate limit and availability depend on the business and insurer.
Certain businesses may be exempt, including some companies employing only their owner or close family members. The applicable rules depend on the business structure and circumstances.
Employers should also ensure their insurance certificate is available to employees as required by law.
Businesses operating in Northern Ireland should check the separate applicable compulsory insurance legislation.
What Does Employers’ Liability Insurance Cover?
Employers’ Liability Insurance can respond to a range of workplace injury and illness claims, subject to the policy wording and circumstances.
Workplace Accidents
Claims arising from certain injuries sustained by employees while carrying out their work.
Work-Related Illness
Claims involving occupational illnesses allegedly caused by workplace conditions or exposures.
Slips, Trips & Falls
Claims arising from accidents involving employees at work, where the employer is legally liable.
Manual Handling Injuries
Claims relating to certain injuries sustained while lifting, carrying or moving equipment and materials.
Compensation Payments
Eligible compensation awarded or agreed where the business has legal liability for an insured employee claim.
Legal Defence Costs
Associated legal defence costs for insured claims, subject to the insurer’s terms and conditions.
Who Needs Employers’ Liability Insurance?
Employers’ Liability Insurance is relevant to businesses across almost every industry where employees are engaged.
Retail & Hospitality
Shops, restaurants, cafés, pubs and hospitality businesses employing staff.
Construction & Trades
Building contractors, electricians, plumbers and other trades employing workers.
Offices & Professional Services
Businesses employing administrative, professional and office-based staff.
Manufacturing & Warehousing
Businesses with employees operating machinery, handling stock or working in industrial environments.
Cleaning & Facilities Management
Companies employing cleaners, maintenance workers and facilities management teams.
Small Businesses & Start-Ups
Even a business with one employee may need compulsory Employers’ Liability Insurance.
Do I Need Employers’ Liability Insurance for Part-Time or Temporary Workers?
Employers’ Liability requirements are not limited to businesses with full-time, permanent staff.
Depending on the working arrangements, your responsibilities may extend to:
- Part-time employees.
- Temporary and seasonal workers.
- Apprentices and trainees.
- Casual workers.
- Certain labour-only subcontractors.
Employment status for insurance purposes depends on the actual working relationship, not simply the label used in a contract.
If you’re uncertain whether someone should be included, our team can help you discuss the arrangements with an insurer.
How Much Employers’ Liability Insurance Do I Need?
The minimum compulsory cover for most employers in Great Britain is £5 million. However, businesses should consider whether a higher limit is appropriate for their risks.
£5 Million Cover
The statutory minimum for most employers subject to the compulsory insurance requirements in Great Britain.
£10 Million Cover
Commonly offered by commercial insurers and frequently requested under business contracts.
Higher Limits
Additional protection may be available where business activities or contractual obligations require it.
Contractual Requirements
Some clients and principal contractors specify insurance limits that businesses must maintain.
Our team can help you review your requirements and explore suitable limits.
Examples of Employers’ Liability Insurance Claims
Employee Injured While Lifting
An employee suffers a back injury while moving heavy stock and alleges that inadequate training or working procedures contributed to the injury.
Accident Involving Machinery
A worker is injured while operating equipment and makes a claim alleging unsafe working conditions.
Slip at Work
An employee slips on a wet floor at work and alleges that the employer failed to take reasonable precautions.
Occupational Illness
An employee develops a work-related condition and alleges that workplace exposure or inadequate safety measures caused it.
These are illustrative examples only. Cover depends on the facts of each claim and the relevant policy wording.
What Does Employers’ Liability Insurance Not Cover?
Employers’ Liability Insurance is intended for certain employee injury and illness liabilities, rather than every business loss.
It does not generally replace:
- Public Liability Insurance for third-party injury or property damage claims.
- Commercial Property Insurance for damage to your premises or equipment.
- Business Interruption Insurance for certain losses of income.
- Motor Insurance for liabilities requiring compulsory motor cover.
- Personal Accident or Income Protection Insurance providing specified benefits independently of employer negligence.
Policy conditions, exclusions and the definition of an insured employee should always be reviewed carefully.
How Much Does Employers’ Liability Insurance Cost?
Premiums depend on the nature of your business and the risks associated with your workforce.
Business Activities
Higher-risk work, such as certain construction or industrial activities, may attract different rates from office-based work.
Number of Employees & Payroll
Employee numbers, payroll and the types of work undertaken can influence pricing.
Claims History
Previous employee injury or illness claims may affect the terms offered by insurers.
Cover Requirements
The selected insurance limit, extensions and business-specific exposures can influence premiums.
Employers’ Liability Insurance is often arranged alongside Public Liability Insurance or as part of a wider commercial insurance package.
Why Choose Edison Ives for Employers’ Liability Insurance?
At Edison Ives, we help businesses understand their insurance responsibilities and explore appropriate cover for their workforce.
We take time to understand your business activities, staffing arrangements and contractual requirements before approaching suitable insurance markets.
Our team can also help explain important policy terms, limits and conditions, providing straightforward advice throughout your insurance arrangements.
Get an Employers’ Liability Insurance Quote
Whether you’re employing staff for the first time or reviewing an existing policy, speak to Edison Ives about your insurance requirements.
Speak to Our Business Insurance Team
Call us on 0113 390 4646
Email info@edinsure.co.uk