Employers liability insurance

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

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

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

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

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.

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

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

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.

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.