Employers liability Insurance

If you’re running a business which employs anyone apart from yourself – even if they’re unpaid – then you must take out this insurance. It’s the law. Find out all about employers’ liability insurance here.

Would I benefit from employers liability insurance?

  • Do you run a business with one or more employees?
  • Do you have employees who are self-employed contractors?
  • Are any of your employees actually volunteers, unpaid interns, agency temps or part-time staff?

If you answer ‘yes’ to any of these questions, then you are legally required to take out employers’ liability insurance. You could be fined up to £2,500 per day if you don’t have it.

There are only a few exceptional circumstances under which you don’t need employers’ liability insurance:

  • You are a sole trader
  • You own run a family business and are related to your employees
  • You run a public organisation such as a government department.

Frequently asked questions

  • What are the benefits of employers’ liability insurance?

    Employers’ liability insurance can protect your business against claims made by employees who have been accidentally injured or become ill as a result of working for you.

    Easy access to ‘no win no fee’ legal services only increases the likelihood that an employee will make a claim against you for an illness they say has been caused by work. It’s even possible that someone could make a claim after they have stopped working for you, saying that a work-related illness has only shown up months later.

    Employers’ liability insurance can cover you against compensation costs, legal fees and medical expenses. 
  • Can you give me an example?

    If one of your warehouse employees were accidentally hurt by a forklift truck, then your business could be liable for a compensation claim. Or if a contractor were working for you at a lathe and trips over a cable, they could make a claim against you if the lathe has not been recently checked against health and safety regulations.

  • Did you know?

    Insurers pay out an average of £7 million a day in liability claims of which £2.7 million is employers’ liability*.

    *Source: Association of British Insurers

What do I need to consider?

  • the cost of your premium partly depends on the number of your employees
  • having cover of at least £5 million
  • claims made against you could be as high as £10 million

What other business insurance cover might interest me?

Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.

This article has been compiled using information available to us up to 01.07.15.