Simply Business homepage
  • Business insurance

    Business insurance covers

  • Support
  • Claims
  • Sign In
Call Us0333 0146 683
Our opening hours

Do I need employers' liability insurance?

Start your quote

If your business has at least one employee, you probably need employers’ liability insurance. A cover level of £5 million of employers’ liability insurance is the legal requirement for most businesses, although there are certain exemptions.

Most employers are required to have at least £5 million of employers’ liability cover, or face a fine of up to £2,500 per day. There are some exceptions to this rule, however: most public organisations and businesses that only employ close family members (as long as they’re not incorporated as limited companies) don’t necessarily need to have employers’ liability insurance.

At Simply Business we insure all kinds of trades like:

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

Do I need employers’ liability insurance for subcontractors?

This depends on whether you’re hiring ‘labour-only’ or ‘bona-fide’ subcontractors. Subcontractors who are ‘labour-only’ work under your direction and use your tools and materials. They are legally considered employees, and so they need to be covered by your employers’ liability policy. On the other hand, subcontractors who are ‘bona-fide’ work under their own direction and provide their own tools and materials, and they usually don’t need to be covered by your employers’ liability policy.

Do I need employers’ liability insurance if I am self employed?

If you’re self-employed and you work on your own, there’s no need to have an employers’ liability policy (unless a contract requires you to have one). You usually only need it if you employ somebody else. There are other business insurance covers that could be useful for you, for example professional indemnity insurance or public liability insurance.

Do I need employers’ liability insurance for contractors?

According to advice provided by the Health and Safety Executive (HSE), you may not need employers’ liability insurance if you’re hiring an independent contractor who also works for other organisations. This can be a complicated area, so it’s best to seek advice if you’re not sure.

Do I need employers liability insurance for a limited company?

If you run a limited company and you employ one or more people, or have more than one director, you need employers’ liability insurance. Even if you’ve only got close family members on your staff, the fact that your company is incorporated as a limited company means that you’re still required to have a policy.

Do I need employers' liability insurance for part-time workers?

Yes, you do need employers' liability insurance for part-time workers. Unless you fall under one of the exemptions, it's compulsory to have employers' liability insurance if you have any employees, even if they're part-time or temporary.

Do I need employers’ liability insurance for volunteers?

If you’ve already got employers’ liability insurance in place, it’s likely that anyone who volunteers for you will be covered by this policy, although you should double check with your insurer. If you don’t have an existing policy it’s probably a good idea to get one so that you’re covered in case one of your volunteers makes a compensation claim against you.

Do I need employers’ liability insurance for temporary employees or students on work experience?

Yes, you need employers’ liability insurance to cover temporary staff, work experience students and anyone on a work placement.

Do I need employers’ liability insurance for one employee?

Yes. Even if you only have one employee you’re required by law to have an employers’ liability policy with a cover limit of at least £5 million.

Do I need employers’ liability insurance if I don’t have any employees?

If you don’t have any employees you don’t need employers’ liability insurance (unless a contract explicitly requires it). However, make sure you fully understand how ‘employee’ is defined for the purposes of the legislation. If your company has more than one director or if you employ a certain type of subcontractor, you may be required to have employers’ liability insurance.

If you’re not sure if you need employers’ liability insurance, check the legislation or seek professional advice.

Ready to set up your employers' liability cover?

As the UK's biggest business insurance provider, we specialise in employers' liability insurance.

Start your quote

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter
Do I need employers' liability insurance?


Public liability insuranceBusiness insuranceLandlord insuranceTradesman insuranceCharity insuranceNot for profit insuranceRestaurant insuranceCommercial van insuranceInsurers


About usOur teamAwardsPress releasesPartners & affiliatesOur charitable workModern Slavery ActSocial mediaSite map

Customer support

Contact & supportPolicy renewalMake a claimProof of policyComplaintsAccessibility


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ


Careers at Simply BusinessTech careersCurrent opportunities


BenefitsRefer a friendFinance


Terms & conditionsPrivacy policyCookie policyVuln Disclosure policy


Knowledge centreOpinionsMicrosites

© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.