UK Employers’ Liability Insurance Quotes
Employers’ Liability Insurance
A legal requirement for most UK businesses that employ staff, covering the compensation and legal costs if an employee is injured or made ill by the work they do for you.
Compare employers’ liability quotes
- Meet the legal minimum of £5m cover (£10m usually provided)
- For any UK business that employs staff
What is employers' liability insurance?
Employers' liability insurance covers the compensation and legal costs if an employee is injured, or becomes ill, because of the work they do for you and makes a claim against your business. In the UK it is a legal requirement for most businesses that employ staff, set by the Employers' Liability (Compulsory Insurance) Act 1969. The law requires a minimum of £5 million of cover, and most insurers provide £10 million as standard. It pays for legal defence and any damages awarded, covering workplace accidents and injuries as well as occupational illness that can appear years after the exposure. Cover is needed for your employees, and usually for casual and temporary staff, apprentices, trainees and labour-only subcontractors working under your control.
Employers' liability applies across almost every business that takes on staff, because the injury risk varies so much from one trade to another. An office, a warehouse, a building firm, a care home and a manufacturer all need employers' liability, but each carries a different underwriting picture. Insurer appetite varies by trade, wage roll and claims history, which is why specialist broker placement matters more than a mainstream off-the-shelf quote.
The cover sits at the centre of your legal duties as an employer. It pays compensation and legal costs where a member of staff is injured or made ill by their work and claims against you, at a minimum of £5m and usually £10m as standard. Cover extends to casual and temporary staff, apprentices, trainees and labour-only subcontractors working under your control. You must keep your certificate of insurance available to staff and to HSE inspectors.
Brokers on our panel underwrite business risks every day. They understand why the trade and its injury risk drive the premium, how the wage roll and number of employees move the price, why claims and health-and-safety history matter, and the tighter appetite for higher-risk work. They price the policy against how you actually operate rather than a fixed online figure.
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What employers' liability insurance covers
Employers' liability insurance pays the compensation and legal costs when a member of staff is injured or made ill by their work and claims against your business. It is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969, with a £5m minimum limit. Here is what a policy responds to.
Workplace accidents and injuries
Slips, trips, falls, lifting injuries and machinery accidents that happen while an employee is doing their job.
Occupational illness and disease
Conditions caused by the work itself, including industrial deafness, dermatitis, asbestos-related illness and hand-arm vibration.
Work-related stress claims
Claims where an employee's mental health is harmed by pressures at work that you had a duty to manage.
Historical claims that appear years later
Illnesses from past exposure can surface long after the event, and cover responds to those late claims.
Legal defence and representation
The cost of defending your business, including solicitors and court representation when a claim is brought.
Compensation and damages awarded
The damages payable to your employee where the claim succeeds, up to the limit on your policy.
What employers' liability insurance does not cover
Employers' liability is built around the trade you declare and the staff who work for you. It covers claims from employees injured or made ill by their work, so some claims sit outside it by design. Knowing where the cover ends matters as much as knowing what it includes, particularly because non-employees, motor-covered injuries and work outside your declared trade are among the most common reasons an employers' liability claim is reduced or declined.
People who are not your employees
Employers' liability only covers people who are legally your employees. Injury to a customer, a visitor or a member of the public falls to public liability instead. If someone who is not on your payroll or under your control is hurt, an employers' liability claim will not respond.
Injuries covered by motor insurance
Injuries to staff that are covered by motor insurance sit outside this policy. Where an employee is hurt in a road accident while driving for work, that claim is dealt with under the motor cover, not employers' liability, so the two do not overlap or pay twice for the same event.
Work outside your declared trade
Cover follows the trade and activities you declare. If staff are injured doing work you did not tell the insurer about, or in a business quite different from the one on the policy, the claim can be reduced or refused. Keep your declared trade up to date as the business changes.
Deliberate breaches of health and safety law
Deliberate or reckless breaches of health and safety law are not protected. Employers' liability meets genuine claims, but it will not shield a business that knowingly ignores its legal duties. The Health and Safety Executive can also fine and prosecute separately where the law is broken.
Claims from before your cover began
A claim arising before the cover started, or before any retroactive date set on the policy, may not be met. Keep cover in place continuously while you employ staff, and keep old certificates, because occupational illness can be claimed years after the work was done.
Professional advice and services
If part of your business is giving advice or a professional service, claims arising from that advice are not met by employers' liability. Professional indemnity is a separate cover for that risk. Employers' liability responds to injury and illness suffered by your own staff, not to the quality of your work.
What is excluded differs from one insurer to the next and from one trade to another. Always check the policy wording carefully on who counts as an employee, the retroactive date and any conditions before buying. For cover against claims from customers or the public injured by your business, see our public liability insurance guide.
Who must have employers' liability insurance
Under the Employers' Liability (Compulsory Insurance) Act 1969, most businesses with staff must hold at least £5 million of cover. Here is who the law applies to, which workers count, and who is usually exempt.
Businesses that need it
- Any business with employees, whatever its size
- Shops, salons and trades with staff
- Offices and agencies with staff
- Care and hospitality with staff
Workers who count
- Full-time and part-time employees
- Casual and temporary staff
- Apprentices and trainees
- Labour-only subcontractors under your control
Usually exempt
- Sole traders with no staff
- Limited-company contractors working alone
- Family businesses employing only close family, unless a limited company
Not sure where you sit? If you employ anyone who is not a close family member, assume you need cover. The HSE can fine a business up to £2,500 for each day it trades without suitable employers' liability insurance in place.
What affects employers' liability insurance costs
There is no fixed price. A specialist prices employers' liability on your trade and your people.
Cover starts at the £5 million minimum set by the 1969 Act, with £10 million provided as standard by most insurers.
The trade and its injury risk
Higher-risk trades such as construction and manufacturing cost more than low-risk office work.
Wage roll and number of employees
More staff and a larger wage roll raise the exposure the policy has to cover.
Claims and health-and-safety history
A clean record keeps premiums down; past claims and poor safety records push them up.
The type of work and duties
Manual tasks, machinery and working at height carry more risk than desk-based duties.
Location
Where your people work feeds into the rating alongside the risks of the trade.
How much does employers' liability insurance cost?
There is no fixed online price for employers' liability insurance. What you pay depends on your business, and a specialist prices it against the risk. The table below shows the main factors that move an employers' liability premium up or down.
| Factor | Why it matters |
|---|---|
| Trade and injury risk | Higher-risk trades carry more chance of injury. |
| Number of employees | More staff raises the chance of a claim. |
| Wage roll | A larger wage roll increases the exposure insured. |
| Type of work | Manual and higher-risk work costs more than office work. |
| Location | Where the work is done can affect the risk. |
| Claims and safety history | Past claims and poor safety records raise the price. |
A rough guide: a business with a few low-risk employees often pays a modest premium, rising with staff numbers, wage roll and the risk of the work. There is no fixed online price, it is quoted by a specialist against your own trade, staff and cover.
How employers' liability insurance works
Cover is required by law for most businesses that employ staff, so arranging it is straightforward. Three steps take you from your details to a certificate of insurance.
Tell us about your business and staff
Give the basics: your trade, your wage roll, the number of employees you have and your claims history. These are the figures a broker prices against.
Compare specialist EL quotes
Brokers who underwrite employer risks price your cover by trade, wage roll and staff numbers, so you can compare quotes built for your business.
Choose cover and get your certificate
Pick your limit, £5m minimum by law with £10m usually provided, then receive your certificate of insurance to keep available to staff and HSE inspectors.
Employers' liability and the law
Employers' liability is not optional for most businesses with staff. It is required by the Employers' Liability (Compulsory Insurance) Act 1969, which sets a minimum level of cover, a daily fine for going without it and rules on the certificate you must keep. This section sets out what the law asks of you as an employer, who must be covered and who is exempt. Open any section below to see how each rule works.
The Employers' Liability Act 1969
Employers' liability insurance is required by the Employers' Liability (Compulsory Insurance) Act 1969. It applies to most businesses the moment they take on staff, whether full time, part time, seasonal or a family member on the payroll. It pays compensation and legal costs if a member of staff is injured or made ill because of the work they do for you.
The duty applies even to a single Saturday assistant. Only a few businesses sit outside it, mainly firms with no employees and some close-family businesses. For everyone else, valid employers' liability cover must be in place from the first day staff start work.
How much cover the law requires
The law sets a minimum of £5 million of employers' liability cover. In practice most insurers provide £10 million as standard, and many client contracts ask to see that higher figure before you can work for them. The higher limit usually costs little more than the minimum.
The limit is the most the insurer will pay for claims arising from any one event, including legal costs. Because a serious injury claim can run into large sums, the £10m standard gives more headroom than the legal minimum.
The £2,500 a day HSE fine
The Health and Safety Executive can fine a business up to £2,500 for each day it does not have suitable employers' liability insurance in place. The penalty runs for every day you are uninsured, so even a short gap in cover can add up quickly.
You can also be fined for not making your certificate of insurance available when an inspector asks to see it. Keeping cover continuous and the certificate to hand is the simplest way to stay within the rules.
Your certificate of insurance
When you take out employers' liability cover the insurer issues a certificate of insurance showing the policy and the limit. You must keep it available to your employees and to HSE inspectors, so they can check the cover is in place.
Since 2008 you no longer have to display a printed copy on the wall, and the certificate can be shown electronically. Keep old certificates too, because a work-related illness can be claimed years later. Compare employers' liability quotes to get your certificate in place.
Who must be covered
Cover is needed for your employees, and usually for casual and temporary staff, apprentices, trainees and labour-only subcontractors working under your control. If you tell people what work to do, when and how, they usually count as employees for this purpose.
It is worth checking each working arrangement rather than assuming someone is self-employed. Getting this wrong can leave a gap that only shows up when a claim is made, so declare everyone who works under your direction.
Who is exempt
A small number of businesses do not need employers' liability. The main examples are a business with no employees at all, and a family business employing only close family members, unless it is a limited company.
Sole traders and limited-company contractors who are the only person in the business and employ no one do not usually need it. Many still take out public liability separately, because it covers a different risk.
Employers' liability and public liability
Employers' liability and public liability cover different people. Employers' liability covers your staff and is a legal requirement; public liability covers injury to members of the public or damage to their property and is not required by law.
Most businesses with staff who also deal with the public need both. They sit alongside each other, one meeting your legal duty to employees and the other meeting claims from customers and visitors.
Historical claims and keeping records
Some work-related illnesses, such as industrial deafness, dermatitis, asbestos-related disease and hand-arm vibration, appear years after the exposure. A claim can be made long after the employee has left, or after the business has changed.
This is why continuous cover and good records matter. Keeping your certificates, and knowing which insurer covered which years, helps trace the right policy if a historical claim is ever made against you.
Employers' liability is set by law, not left to choice, for most businesses with staff. Compare employers' liability quotes to get the cover and certificate you need for your trade across the MyMoneyComparison.com broker panel.
Who needs employers' liability insurance?
Almost any UK business that employs staff needs employers' liability insurance. It is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969, which sets a minimum of £5 million of cover, though most insurers provide £10 million as standard. It applies to permanent, part-time, casual and temporary staff, and usually to apprentices and labour-only subcontractors working under your control.
Employers with permanent staff
Any business that employs one or more people needs cover from the day the first employee starts. The law requires at least £5 million, and most insurers provide £10 million as standard.
Part-time and casual staff
Cover is needed whether staff are full-time, part-time or casual. It is the employment relationship that counts, not the hours worked or how often someone is on your payroll.
Temporary and seasonal workers
Seasonal, temporary and short-term staff taken on for busy periods still need to be covered. Employers' liability responds if they are injured or made ill by the work they do for you.
Apprentices and trainees
Apprentices, trainees and people on work placements count as employees for insurance. They must be included under your employers' liability cover while they work under your control.
Labour-only subcontractors
Labour-only subcontractors who work under your direction are usually treated as employees for cover. Check how each contract is set up, as it decides whether they fall under your policy.
Family firms and sole traders
A business with no staff, or a family firm employing only close relatives, is often exempt, unless it is a limited company. Many sole traders still arrange public liability separately.
If you employ staff, employers' liability cover is a legal requirement. Compare employers' liability quotes to match cover to your business, trade and payroll.
Employers' liability vs public liability insurance
The two covers are often confused but protect different people. Employers' liability covers your staff and is a legal requirement for most businesses that employ anyone. Public liability covers injury or damage to members of the public and clients, and is not required by law, though many businesses cannot trade without it. Most businesses with staff need both, and they are often arranged together in one policy.
| Comparison | Employers' liability Cover for your staff | Public liability Cover for the public and clients |
|---|---|---|
| Who it protects | Your employees, if they are injured or made ill by the work they do for you and make a claim against your business | Members of the public and clients, if they are injured, or their property is damaged, because of your business activities |
| Is it a legal requirement | Yes, for most employers, under the Employers' Liability (Compulsory Insurance) Act 1969, with a £5 million legal minimum | Not required by law for most businesses, but often needed to win work, and required by many clients, landlords and contracts |
| What triggers a claim | An employee suffers a workplace injury or work-related illness and claims that your business was at fault | A customer, visitor or client is injured, or their property is damaged, and claims that your business was responsible |
| Typical cover level | A legal minimum of £5 million, with most insurers providing £10 million of cover as standard | Chosen by the business, commonly £1 million, £2 million or £5 million, depending on the trade and what contracts require |
| Who can claim | Your staff, including part-time, casual and temporary workers, apprentices, trainees and labour-only subcontractors under your control | Customers, visitors, suppliers and passers-by, anyone who is not your employee but deals with your business |
| Typical example | A warehouse worker is hurt by machinery, or an employee develops a work-related illness after years on the job | A customer trips over trailing cable in your premises, or you damage a client's property while working on their site |
| If you go without | The HSE can fine a business up to £2,500 for each day it does not have suitable employers' liability insurance in place | No legal fine, but you meet any claim from the public yourself, and a single injury claim can run to large sums |
Important: Cover detail shown is indicative of how UK business liability policies are typically structured. It is illustrative only and does not constitute a quotation or offer of insurance. Specific policy wording, sums insured, indemnity periods and exclusions vary by insurer and individual circumstances. MyMoneyComparison.com Ltd is authorised and regulated by the Financial Conduct Authority, FCA registration number 916241.
Most businesses with staff need both covers. Employers' liability protects your team, while public liability insurance covers injury or damage to the people your business deals with.
Specialist Employers' Liability Insurance
Specialist employers' liability comparison since 2013
Since 2013, MyMoneyComparison.com has helped UK employers meet their legal obligations without the runaround. Whether you have taken on your first member of staff or run a large payroll, our specialist broker panel arranges employers' liability cover every day. Compare specialist employers' liability cover from a panel that understands the 1969 Act, the £5 million legal minimum, and workplace injury and occupational illness claims across UK trades.
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Everything You Need to Know
Detailed answers to help you understand more about employers’ liability insurance.
What is employers' liability insurance?
Employers’ liability insurance covers the compensation and legal costs if an employee is injured, or becomes ill, because of the work they do for you and makes a claim against your business. In the UK it is a legal requirement for most businesses that employ staff.
Is employers' liability insurance a legal requirement?
Yes. The Employers’ Liability (Compulsory Insurance) Act 1969 requires most businesses with employees to hold it. The law sets a minimum of £5 million of cover, and most insurers provide £10 million as standard.
How much cover do I need?
The legal minimum is £5 million, but most policies come with £10 million as standard, which is what many contracts and larger clients expect. Higher-risk trades and some public-sector contracts may ask for more.
What does employers' liability insurance cover?
It covers compensation and legal defence costs where an employee is injured or made ill by their work. That includes workplace accidents, occupational illness and disease such as industrial deafness or dermatitis, work-related stress, and historical claims that appear years later.
Who counts as an employee?
As well as full-time and part-time staff, it usually includes casual and temporary workers, apprentices and trainees, and labour-only subcontractors who work under your control. If you direct how, when and where someone works, they are likely to count.
Are there any exemptions?
A business with no employees does not need it, and a family business that employs only close family members is usually exempt, unless it is a limited company. If you are unsure, treat anyone who works under your control as an employee and check.
What is the fine for not having it?
The Health and Safety Executive can fine a business up to £2,500 for each day it does not have suitable employers’ liability insurance in place. It can be enforced from the first day you should have been covered.
Do I need to display my certificate?
You must keep your certificate of insurance available to your employees and to HSE inspectors. Since 2008 it can be shown electronically, so a printed copy no longer has to be displayed on the wall, but it must be easy for staff to see.
Does it cover subcontractors?
Labour-only subcontractors who work under your direction are usually treated as employees and should be covered. Bona fide subcontractors who carry their own insurance and control their own work are different, so declare how you use subcontractors when you quote.
What is the difference between employers' and public liability?
Employers’ liability covers claims from your own staff and is a legal requirement. Public liability covers injury to members of the public or damage to their property. Most businesses with employees need both, and they are often bought together.
Does it cover work-related illness or historical claims?
Yes. It responds to occupational illness and disease as well as accidents, including conditions such as deafness, dermatitis, vibration injury and asbestos-related illness that can appear years after the exposure, which is why continuous cover matters.
How much does employers' liability insurance cost?
There is no fixed price. The premium depends on your trade and its injury risk, your wage roll and number of employees, your claims and health-and-safety history, and the type of work. A specialist broker prices it against how your business actually operates.
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