Employers' liability insurance

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.

• employers’ liability insurance, UK-based claims and customer service team
• add it onto a tailored policy, alongside public liability insurance
• rated 4.7/5 based on 39K+ public liability customer reviews

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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.

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.

Read more about what employers’ liability insurance is

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.

Example employers liability insurance quotes, real prices

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:

• Builders insurance
• Catering insurance
• Cleaning insurance
• Contractor insurance
• Hairdressing insurance
• Home baking insurance
• Online retailer insurance
• Pub insurance
• Public liability insurance for security guards
• Restaurant insurance
• Roofing insurance
• Takeaway insurance

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

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.

Example employers liability claims

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

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.

• Who needs employers’ liability insurance?

  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.

  Read more about who needs employers’ liability insurance

• Is employers’ liability insurance a legal requirement?

  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.

  Read more about employers’ liability insurance as a legal requirement

• What does employers’ liability insurance cover?

  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.

  Read more about what does employers’ liability insurance covers

• How many employees can you insure?

  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.

• What kind of excess should I expect?

  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.

• Does public liability insurance cover my business for the actions of my employees?

  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.