Employers' liability insurance is a legal requirement for most UK businesses with staff.
Employers' liability insurance covers you if an employee becomes ill or is injured as a result of their work. It's a legal requirement for most businesses that employ staff, including part-time workers, temporary staff, and apprentices.
You must have cover of at least £5 million (most policies offer £10 million as standard). Failure to have adequate cover is a criminal offence carrying fines of up to £2,500 per day.
The main exemptions are sole traders with no employees, and family businesses where all employees are closely related to the owner.
💡 Display your employers' liability certificate where employees can easily read it, or make it available electronically. You can be fined £1,000 for failing to display it.
Costs depend on your industry, number of employees, and claims history. A low-risk office business might pay £50–£100 per year per employee, while a construction firm could pay £200–£500+ per employee.
You can reduce costs by maintaining strong health and safety practices, implementing risk assessments, and having a clean claims history.
Employers' liability covers compensation claims from employees who suffer injury, illness, or death due to their work. This includes physical injuries, work-related stress, and illnesses caused by workplace conditions.
Claims can be substantial — serious injury or death claims can reach millions of pounds. Without insurance, your business would be personally liable for the full amount.
⚠️ Not having employers' liability insurance when you need it is a criminal offence. Fines can reach £2,500 per day of non-compliance.
A specialist insurance broker can compare quotes from multiple insurers and find the right cover at the best price. Get matched with a business insurance broker through Nesto.
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