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?


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