Employers’ liability insurance

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What is employers’ liability insurance?

Employers’ liability insurance is a legal requirement for most UK employers, under the Employers Liability Act 1969. It’s designed to protect you and your employees (including those who no longer work for you) if they’re injured or become unwell as a result of working for you, covering the associated legal and compensation costs, and other damages.

Additionally, it can cover accidental injury or damages caused by an employee to a third party, like your client. With Simply Business, you can buy employers’ liability insurance as part of a tailored policy, alongside public liability insurance, plus any additional covers you may need.

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Employee liability insurance – what’s covered?

Employers’ or employer liability insurance can protect you against the cost of compensation claims raised by employees, if they’re injured or get sick because of your business. It’s usually a legal requirement for businesses who employ one or more people, and you risk £2,500 a day in fines for each employee not properly covered. It also works to cover damage or injuries caused to a third party, like a passer-by or client, by your employees.

Third party injury

You might claim for this if your employee accidentally injures someone, while working for you.
Third party property damage

You might claim for this if your employee accidentally damages someone’s property, while working for you.
Employee injury or illness

You might claim for this if your employee accidentally injures themselves, while working for you.

Third party injury

You might claim for this if your employee accidentally injures someone, while working for you.

What’s typically covered?

Accidental third party injuries caused by your employees, while working for your business.

For example:
- your employee accidentally burns a customer’s hand while using a milk steamer in your coffee shop, and they make a claim
- a jogger trips over some signage boards outside your shop, which your duty manager forgot to put away
Third party property damage

You might claim for this if your employee accidentally damages someone’s property, while working for you.

What’s typically covered?

Accidental damage to third party property caused by your employees, while working for your business.

For example:
- your employee is presenting to a client and accidentally knocks a laptop off a desk, causing it to break
- while working on a client’s renovation, your temporary apprentice drips paint across a newly laid carpet, which will need to be replaced
Employee injury or illness

You might claim for this if your employee accidentally injures themselves, while working for you.

What does this cover?
- accidental employee injuries or illness, which come as a direct result from working for you
- temporary employees, as well as apprentices, contractors, and casual workers
When would I need to make a claim?
- for example, one of your employees develops musculoskeletal problems because of working for you, and raises a claim

This content has been created for general information purposes. Make sure you have the right level of business insurance by checking your policy documentation for details. Read our full Terms and Conditions

Why is employer liability insurance important?

Employers’ liability insurance can protect you against compensation claims for:

employee illness or injury caused by working for you
medical bills and legal fees due to employee illness or injury

You’re required by law to have employers’ liability cover in place if you have employees. If you don’t, you could face a hefty fine of £2,500 per day, per employee, for each day that you’re not covered.

Employers liability insurance cost

Find out how much you’ll pay by comparing prices from a range of trusted insurers. You choose what goes into your policy, so you only pay for what you need.

Prices start from £4.74 per month

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The price is for up to £2 million of public liability insurance – 10% of customers paid £56.82 or less annually between 1st Jan – 31st May 2024. Equivalent to £4.74 a month (and excludes the extra costs for paying monthly). 76% of customers have a £1 million limit and 24% £2 million. If you complete a quote, more types of cover will be available. These all have additional costs.

Example employers liability insurance quotes, real prices

£40.49 /month

£359.92 /year

A small painting and decorating company who occasionally use casual workers, as well as permanent employees

5+ years’ experience
Limited company
3 employees
Based in Leicester

Public liability

£2,000,000

Employers’ liability

£10,000,000

Tools

£4,000

£173.40 /month

£1,541.36 /year

A large high street-based takeaway which uses a fryer (serviced annually)

1-2 years’ experience
Sole trader
2 employees
Based in Sunderland

Public liability

£2,000,000

Employers’ liability

£10,000,000

Stock

£5,000

How we work out example quotes These examples are real quotes from our online system (created 19/07/2023). They’re based on a range of factors, like employees and location. Your own quote will be based on what you tell us about your business. Prices may go up or down from day to day, so the prices you’re quoted may differ to the ones you see here.

How it works

Pick what goes into your policy

Only pay for what you need

Get prices from a range of insurers

Choose the best fit for you

Buy online in minutes

Get your documents the same day

Start your quote

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Does employers liability insurance cover my work?

Make sure you’re picking the right cover to protect your business properly. Some examples of trades we cover include:

Is your profession not listed? When you run a quote you can select your trade from over 1,000 options.

Talk to an expert

Our team of UK-based insurance experts are here to help, Mon 09.00am – 05.30pm, Tues 09.00am – 05.30pm, Weds 09.00am – 05.30pm, Thurs 09.30am – 05.30pm, Fri 09.00am – 05.30pm, Sat 09.00am – 02.00pm

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FAQs

Find answers to common insurance questions

How do claims work?

Unlike price comparison websites, we take the hassle out of claims for you. We know how important it is to get your business back on track quickly – and with a minimum of fuss. That’s why you get access to your dedicated claims any time, day or night. Call them on 0333 207 0560 or claim online. They’ll do their best to be fair and supportive.

£51 million in claims paid out in 2023

83% of claims were settled in 2023.

The figure above is rounded across our range of products. “Settled” covers paid, declined or withdrawn. Our claims process may vary for different products and operates on a ‘claim by claim’ basis. Our specialist partner Sedgwick will pay the claims on behalf of the insurer. Reviewed on 24/04/2024.

Example employers liability claims

Having employers’ liability insurance through Simply Business has saved UK businesses thousands of pounds when the unexpected happened.

James saved more than £15,000

James (not his real name) was fitting some floors with his employee, Ismail. During the job, Ismail walked across a loose floorboard and fell, causing a knee injury. The employers’ liability insurance added to his policy covered Ismail’s medical costs.

Insurance payout

£15,152

Covering the cost of employee injury

Insurance payout

Covering the cost of employee injury

Employers liability insurance FAQs

Whether you’re new to buying business insurance or you’ve been trading for a while, here are the answers to some commonly asked questions about employers’ liability insurance. You can also check out our business insurance FAQs.

If you have employees, you’ll usually need to have employers’ liability insurance in place – it’s a legal requirement.

You should also have cover in place if you have labour-only subcontractors (LOSCs) working for you. Our Knowledge centre has more information on subcontractors and employers’ liability insurance. If you have employees and you’re not covered, you could face a hefty fine of £2,500 a day, per employee, for each day that you don’t have cover in place.

There’s one exception though – if you have a family business that isn’t incorporated as a limited company, you aren’t legally required to have employers’ liability insurance.

A “family business” is one where all your employees are closely related to you (as a spouse, civil partner, sibling, child, parent, grandparent, grandchild, step-parent, stepchild, or half-sibling).

So if you run an unincorporated family business and you choose not to get employers’ liability insurance, it’s important to know that your public liability insurance wouldn’t cover you against damage or injury caused by your team.

If you have employees – including some subcontractors – you’re required by law to have employers’ liability insurance. The only exception to this is if you’re running an unincorporated family business. If you are, then you aren’t legally required to have employers’ liability cover in place.

Employers’ liability cover protects you and your employees in case they become sick or injured as a result of working for you. If you’re not covered, you could be fined £2,500 per employee for each day that you don’t have cover in place.

Employers’ liability insurance must be bought alongside public liability insurance.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Employers’ liability insurance protects you against the cost of compensation claims that arise from employee illness or injury as a result of working for you.

For example, if one of your employees slips and breaks their wrist at your business premises, employers’ liability insurance can cover medical bills and legal fees that can arise from a claim against you.

This will depend on the insurer you choose to go with. When you start a quote with us, make sure you tell us how many employees you’d like to cover – we’ll then match you to the insurers who are best suited to your business.

An excess is an amount you pay towards any claim you make on your insurance. For example, if your excess is £250 and you make a claim worth £1000, your payout will be a maximum of £750.

Insurance cover	Lowest excess	Highest excess
Public liability	£100	£2500
Employers’ liability	No excess	No excess
Tools	£60	£500
Stock	£100	£500
Business and office equipment	£50	£750

The figures above are for guidance only and any excess applying to your quote may differ. You’ll get a breakdown of the excesses for each quote when you compare with us.

This will depend on whether you have employers’ liability insurance in place. Public liability insurance is designed to protect your business against the consequences of legal action brought by members of the public for injuries or damage to their belongings. But when it comes to your employees causing injury or damage, this protection only activates if you also have employers’ liability insurance.

If you employ people, you’re required by law to have employers’ liability insurance.

There’s one exception here. Family businesses that aren’t incorporated as a limited company are not legally required to have employers’ liability insurance. The government defines a “family business” as one where all your employees are closely related to you (as a spouse, civil partner, sibling, child, parent, grandparent, grandchild, step-parent, stepchild or half-sibling). So if you run an unincorporated family business and you choose not to get employers’ liability insurance, it’s important to know that your public liability insurance wouldn’t cover you against damage or injury caused by your team.

We create this content for general information purposes and it should not be taken as advice. Always check policy documentation for details and seek professional advice. Read our full Terms and Conditions

Employers’ liability insurance

What is employers’ liability insurance?

Employee liability insurance – what’s covered?

Third party injury

Third party property damage

Employee injury or illness

Why is employer liability insurance important?