An employer’s liability policy can cover you for:
Work-related injuries and illnesses
If an employee is injured or becomes ill due to their job your EL policy can cover compensation payments, medical expenses and legal defence costs. Whether it’s a slip in the office, long-term exposure to harmful substances, or faulty equipment, this cover is essential for all types of workplaces and required by law in the UK.
Historical or long-tail claims
Claims don’t always happen immediately. EL insurance can protect you years after the employee leaves or retires, as long as you had valid cover in place when the exposure occurred.
Legal fees and defence costs
Even if a claim is unfounded or exaggerated, your EL insurance covers the cost of defending the business in court, including solicitor fees and expert witness reports.
Temporary and part-time staff
The policy usually extends to cover anyone working under your control and supervision, including apprentices, contractors, temporary and casual workers, or volunteers (depending on the policy wording).
Health & safety investigations and compliance
Many policies also include cover for legal representation during investigations by regulators like the Health & Safety Executive (HSE), including during improvement notices or interviews under caution.
Frequently asked questions
1. What is employers’ liability insurance?
Employers’ Liability (EL) insurance protects businesses against claims from employees who suffer injury, illness, or disease as a result of their work. It covers legal costs and compensation, helping you meet your obligations under UK law.
This insurance is legally required in the UK for most businesses that employ staff, whether full-time, part-time, temporary, or even volunteers and apprentices.
2. Who needs employers’ liability insurance?
In the UK, you must have EL insurance if you:
- Employ anyone under a contract of service, including part-time or casual staff
- Use labour-only subcontractors or temporary workers
- Have apprentices or volunteers under your supervision
Exceptions: You may not need this if you only employ close family members (and are not incorporated as a limited company), or if you’re a sole trader with no employees.
Failure to hold valid EL cover can lead to fines of £2,500 per day from the Health and Safety Executive (HSE).
3. What are the additional benefits of having employers’ liability insurance?
Beyond legal compliance, employers’ liability insurance offers several important benefits. It provides financial protection by covering compensation costs and legal fees, which can be substantial. Holding this cover also helps manage your reputation by demonstrating to staff that you are a responsible and compliant employer. Additionally, some clients and contractors require proof of employers’ liability insurance before entering into contracts. Many policies also cover claims arising from past incidents, such as hearing loss or industrial disease, even years after employment has ended.
4. What type of businesses are at risk?
Any business with employees faces risk, particularly those in sectors involving physical work or the use of equipment. Construction and trades workers are prone to manual labor injuries and equipment accidents, while retail and hospitality staff often encounter slips, trips, and lifting injuries. Office and professional service environments see risks like repetitive strain injuries, mental health issues, and work-related stress claims. Healthcare, care homes, and nurseries deal with challenges such as patient lifting, infection risks, and emotional strain. Warehousing and logistics workers are exposed to manual handling and vehicle-related accidents. Even in so-called “low-risk” workplaces, accidents or illnesses can still occur, and compensation claims can be both unexpected and costly.
