Employers' liability insurance
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Protect your business with employers' liability insurance from Trade Direct Insurance. If an employee suffers a work-related injury or illness and your business is found legally liable, employers' liability insurance can help cover damages, claimant's costs and expenses, and legal defence costs, subject to the policy terms and conditions.
Employers' liability insurance explained
If you employ staff, you're responsible for helping provide a safe working environment. Even with the right health and safety measures in place, workplace accidents and work-related illnesses can still happen.
Employers' liability insurance is designed to protect your business if you're found legally liable after an employee or former employee brings a claim for injury or disease.
Our employers' liability insurance is available with cover of up to £10 million. Here’s some more information about what’s covered under the policy:
Damages and compensation
If your business becomes legally liable following an employee claim, employers' liability insurance can cover damages awarded, subject to policy terms and conditions.
Claimant costs and expenses
Where covered under the policy, employers' liability insurance can also cover the claimant's costs and expenses associated with an insured claim.
Legal defence costs
Employers' liability insurance can cover legal defence costs incurred when defending an insured claim, subject to the policy terms and conditions.
Court representation
Depending on the circumstances, cover may include representation at a Coroner's Inquest, Fatal Inquiry or certain court proceedings connected with an insured event.
Court attendance expenses
Where provided under the policy, court attendance expenses may be available if you, a director, partner or employee are required to attend court as a witness in connection with an insured claim.
What is the purpose of employers' liability insurance?
Employers' liability insurance is designed to protect your business if an employee or former employee claims they suffered bodily injury or disease because of their work.
If your business is found legally liable, the policy can help cover damages, claimant's costs and expenses, and legal defence costs, subject to the policy terms and conditions.
Subject to the policy terms and conditions, employers' liability insurance can help cover:
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Damages awarded against your business
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Claimant's costs and expenses
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Legal defence costs
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Representation at a Coroner's Inquest or Fatal Inquiry
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Certain court attendance expenses
It can also help demonstrate that your business meets its legal responsibilities where employers' liability insurance is required.
Download our "What is the purpose of employers' liability insurance?" infographic
What can employers’ liability insurance cover?
Understanding what employers' liability insurance is designed to cover can help you decide whether it's appropriate for your business.
What can be covered
✔ Your legal liability for bodily injury or disease sustained by an employee arising out of and in the course of their employment
✔ Damages awarded against your business following an insured claim
✔ Claimant's costs and expenses where covered under the policy
✔ Legal defence costs incurred, with the underwriters consent
✔ Representation at a Coroner's Inquest or Fatal Inquiry where covered
✔ Court attendance expenses where provided under the policy
✔ Unsatisfied court judgments in certain circumstances
✔ Temporary work overseas for directors, partners and employees, subject to territorial limits and policy terms
What can’t be covered
✘ Offshore incidents that result in employee injury or illness
✘ Deliberate or intentional criminal acts where excluded under the policy
✘ Fines and penalties where excluded under the policy
✘ Liability where compulsory motor insurance applies
✘ Activities outside the territorial scope of the policy
Always refer to your policy wording for the full terms, conditions, exclusions and limitations.
Why is employers’ liability insurance important?
If you employ anyone, there's always the possibility that a workplace accident or work-related illness could lead to a claim.
Even businesses with strong health and safety procedures can face allegations from current or former employees. The financial impact of damages, claimant's costs and expenses, and legal defence costs can be significant.
For many businesses that employ staff, employers' liability insurance is also a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969. Certain exemptions apply for family members employed in non-limited companies, and for employees working abroad.
Our employers' liability insurance provides cover of up to £10 million and is available across all of our public liability insurance packages.
Who needs employers’ liability insurance?
Employers' liability insurance is relevant for many businesses that employ people. The legal definition of an employee is wider than many employers realise and can include individuals working under different types of arrangements.
Employers' liability insurance may be required if your business employs:
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Full-time employees
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Part-time employees
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Temporary workers
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Casual workers
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Apprentices
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Trainees
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Volunteers
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Work experience students
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Labour-only subcontractors (depending on the working relationship)
Your legal responsibilities will depend on the nature of your business and your relationship with the people working for you.
Some businesses may be exempt from the legal requirement for employers' liability insurance, including certain businesses employing only close family members or workers based entirely overseas. If you're unsure whether you need cover, contact our expert insurance team to talk more about your specific situation.
Is employers' liability insurance a legal requirement?
For most UK businesses, employers' liability insurance is a legal requirement under the Employers' Liability (Compulsory Insurance) Act 1969 if you employ one or more people.
The law requires businesses to have at least £5 million of employers' liability insurance from an authorised insurer. Many policies, including ours, provide cover of up to £10 million.
There are limited exceptions, but these depend on the structure of your business and who you employ. For example, some businesses employing only close family members may be exempt, although this exemption does not usually apply to limited companies.
Businesses are also required to make their employers' liability insurance certificate available to employees. This can be displayed electronically or as a printed copy.
Failure to hold employers' liability insurance where legally required can result in financial penalties.
Employers' liability vs public liability insurance
Employers' liability insurance and public liability insurance protect against different types of claims. Here’s a quick breakdown of the key differences between them:
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Employers' liability insurance |
Public liability insurance |
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Protects your business against claims made by employees or former employees |
Protects your business against claims made by customers, visitors and members of the public |
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May be a legal requirement if you employ staff |
Not usually a legal requirement |
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Covers claims relating to work-related injury or illness |
Covers claims relating to accidental injury or damage to third-party property |
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Available up to £10 million |
Available up to £5 million |
Some businesses choose both types of cover because they protect against different risks.
Want to learn more? Watch our quick video.
Or, you can download our "employers' liability vs public liability insurance" infographic.
How much does employers' liability cost?
The cost of employers' liability insurance varies from one business to another.
Rather than just charging a fixed price per employee, we consider a range of factors when calculating your premium.
Factors affecting your final policy price may include:
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The type of work your business carries out
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The number of employees
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Your industry and level of risk
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Your annual turnover
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Your business structure
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Where your business operates
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Your previous claims history
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The level of cover selected
Because every business is different, you'll receive a personalised quote based on your individual circumstances.
Your employers’ liability insurance cover options
Whether you're a sole trader taking on your first employee or a growing business with a larger team, our packages include employers' liability insurance alongside a range of additional cover options.
Essentials
✔ Public liability insurance up to £5 million
✔ Third party financial loss £100,000
✔ Employers' liability insurance £10 million available
Ideal for: Businesses looking for straightforward liability protection, including employers' liability insurance as required.
Classic
Our Classic package builds on Essentials by adding cover for professional services and business equipment.
✔ Public liability insurance up to £5 million
✔ Professional indemnity cover £100,000
✔ Third party financial loss £100,000
✔ Capital death benefit
✔ First £1,000 of tools cover (can be increased to £15,000)
✔ Employers' liability insurance £10 million available
Ideal for: Businesses that want broader protection across their day-to-day operations, including cover for tools and professional services.
Also includes: Price Freeze (2 years, T&Cs apply)
Plus
Our Plus package includes everything available with Classic and adds temporary total disablement benefit.
✔ Public liability insurance up to £5 million
✔ Professional indemnity cover £100,000
✔ Third party financial loss £100,000
✔ Capital death benefit
✔ First £1,000 of tools cover (can be increased to £15,000)
✔ Temporary total disablement benefit up to £600 a week per person
✔ Employers' liability insurance £10 million available
Ideal for: Businesses looking for more comprehensive cover across multiple areas, including additional protection if an insured person is unable to work following a covered injury.
Also includes: Price Freeze (2 years, T&Cs apply)
Optional extras for employers
Depending on your business needs, you can extend your policy with additional cover options.
Optional extras include:
Contract works
Hired-in plant
Stock in transit cover
Jury service cover
Owned plant
These covers are not included as standard and must be added to your policy if required.
Fixed Price, Fixed Peace of Mind
Lock in your insurance price for two full years with Trade Direct’s Price Freeze with our Classic and Plus policies.
Whether you're a builder, plumber, electrician or decorator, we know your work load can be unpredictable - your insurance price shouldn’t be.
Employers' liability insurance FAQs
Related insurance for employers
Public liability insurance
Public liability insurance protects your business if a customer, visitor or member of the public claims they suffered injury or property damage because of your work.
Professional indemnity insurance
If your business provides advice, specifications or professional recommendations, professional indemnity insurance can provide additional protection against claims for financial loss.
Tradesman liability insurance
Our tradesman liability insurance combines public liability insurance with a range of additional cover options, including employers' liability insurance where required.