How much does employers’ liability insurance cost?

The price of your employers’ liability insurance depends on several factors, including your business type and number of employees. Businesses that are perceived as riskier are likely to pay higher premiums. Run an online quote to quickly get a price for your employers’ liability insurance.

Employers’ liability insurance can cover you if one of your employees sues you for damage or injury that’s been caused by their work. For example if a member of staff trips in the office and is badly injured, or if a worker falls ill due to long-term exposure to construction dust.

Claims can be made long after someone has stopped working for you, as symptoms can sometimes take a while to manifest. If your business is found liable, you can be ordered to pay compensation costs, which can take into account things like loss of income and medical expenses. Your employers’ liability insurance can cover these costs, up to the limit of your policy.

The cost of employers’ liability insurance

The price of your employers’ liability insurance depends on the work that your business does and the risks your employees face. The cost can also depend on the cover level you choose, but in practice most providers offer a standard amount of £10 million.

As with other types of insurance, your insurer calculates your premium based on the likelihood that you’ll make a claim and the cost of any possible claim. This means that if your business is perceived as risky, it’s possible that your insurance premium will be higher. For example if your employees work with hazardous materials like asbestos, or they work in dangerous environments like oil rigs, your insurance is likely to cost more.

You can decrease the chance of a claim and possibly lower the cost of your employers’ liability insurance by taking precautions to keep your staff safe, and ensuring that workers are properly trained and supervised and have the right tools and safetywear.

Penalties for lack of cover

Remember that the cost of your employers’ liability policy is likely to be a fraction of the cost of the penalty for failing to have the right cover. You can be fined up to £2,500 each day that you don’t have an employers’ liability policy in place if your business is legally required to have one.

You also need to display your employers’ liability certificate somewhere all your employees can see it, and you can be fined if you fail to do this. It’s ok to display it digitally, for example on your company’s intranet, as long as all your staff have access and you’ve told them where to find it.

Under the Employers’ Liability Act most businesses with one or more employees should have at least £5 million of cover and they must display their insurance certificate. There are some exemptions, however, including some family businesses, so check the government guidance if you’re not sure whether your business is included.

Getting a price for your employers’ liability insurance

The quickest and easiest way to find out how much a policy will cost is to run a quote. It only takes a few minutes and you’ll get tailored quotes based on the cover your business needs. You can buy your employers’ liability policy alongside other key business covers like professional indemnity insurance and public liability insurance.

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