Employers’ Liability FAQs

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Explaining Employers’ Liability insurance

Questions and answers that relate to Employers’ Liability cover, which is added automatically to your Tradesmans’ Liability quotation if you have employees or trainees.

This information is provided as a guide only, and if you have any doubts or questions, you can give our friendly team a ring on 08000 280 380.

Full details of our Terms & Conditions, Limits, Excesses and Policy Exclusions can be found in our Policy Wordings. These guides refer to our Tradesman Insurance policy.

Q. What is Employers’ Liability insurance?

Q. Is Employers’ Liability insurance required by law?

Q. What is ELTO?

Q. Do I have to provide my Employer Reference Number?

Q. What is the difference between Public Liability insurance and Employers’ Liability insurance?



Q. What is Employers’ Liability insurance?

A. Employers’ Liability insurance is designed to pay your legal liabilities should your employees be killed, or injured while working for you in connection with your business, or contract a disease as a result of that work. The types of costs that this can cover include compensation for death, injury or illness, the employee’s costs and expenses, and your costs and expenses incurred in defending yourself, such as legal fees.

The Health and Safety Executive (HSE) state: “Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims.

Employers’ liability insurance is designed to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site. However, any injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.”

With death, injury and disablement and illness, coupled with associated legal costs, the potential costs can be significant, and being adequately covered for this risk is a legal requirement, and having sufficient cover is essential.

Q. Is Employers’ Liability insurance required by law?

A. If you have employees, then Employers’ Liability insurance is a legal requirement. This is governed by The Employers’ Liability (Compulsory Insurance) Act 1969 in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.

Q. What is ELTO?

A. The Employers’ Liability Tracing Office (ELTO) is an independent organisation that was set up by the insurance industry in order to make it easier for employees to trace a former employer, or employers insurance policy. As diseases can take some time to become apparent, or to be diagnosed, without ELTO, it was historically difficult for employees to find a former employer’s Employers’ Liability insurer.

Q. Do I have to provide my Employer Reference Number?

A. Providing your Employer Reference Number when you purchase an Employers’ Liability policy is not a legal requirement, however it is a requirement of the Financial Conduct Authority, the financial services industry regulator. In order to help those who have suffered injury or disease in the workplace identify the relevant Employers' Liability insurer quickly and efficiently, it is now a regulatory requirement for all insurers to supply a unique identifier to the Employers' Liability Tracing Office for their database

Q. What is the difference between Public Liability insurance and Employers’ Liability insurance?

A. Pretty much everything! It's probably best having a read about “What is Public Liability insurance?” and “What is Employers’ Liability insurance?

Any more questions?

If you have a question that’s not answered here, please ring us on 08000 280 380.

If you'd like to get a Tradesman's Public Liability quote, please visit our Public Liability page.

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