Employers' Liability insurance FAQs
Questions and answers that relate to employers' liability cover, which is added automatically to your tradesman liability quote if you have employees or trainees.
What is the purpose of employers' liability insurance?
This insurance pays the damages, compensation, and legal costs if one of your employees, or ex-employees, claims compensation for a work-related illness or injury suffered as a result of working for your business.
What should employers' liability insurance cover?
Is employers’ liability insurance a legal requirement?
Legally, you are required to get employers’ liability insurance as soon as you become an employer. Your policy must cover you for at least £5 million, and come from an authorised insurer.
Do I need employers' liability insurance if I am self employed?
If you have at least one employee, you probably need employers’ liability insurance. The minimum legal requirement is to have cover of £5 million.
Who does employers' liability cover?
This covers your business and you (as the employer). It protects you by paying any award for damages, compensation, or legal fees (up to the limit of the policy).
Is employers' liability insurance compulsory?
Why is employers’ liability insurance important?
It’s an insurance policy that protects your business should you be sued by a current or former employee for an illness or injury suffered as a result of working for you.
When is employers’ liability insurance required?
How does employers' liability work?
If a claim made against your business by current or former employees is successful, your insurance will pay the damages, compensation, and legal fees (subject to the terms of your policy).
Employers' liability when working from home
Is employers' liability the same as professional indemnity?
Professional indemnity is not required by law, but it is recommended as the cost of a successful claim can be financially devastating.
How much employers' liability do I need?
You must have cover worth at least £5 million, but many employers’ liability insurance policies provide cover up to £10 million as part of their standard cover.
Who is employers' liability cover to protect?
If your business employs anyone, you must be insured. ‘Employees’ include volunteers, friends, trainees, part-time staff and some sub-contractors.
Can I get temporary liability insurance?
For a business hosting a one-off event, temporary cover is a common requirement. However, if your business hosts several events in a year, an annual policy will be more appropriate.
How much is UK employers' liability insurance?
Is employers’ liability the same as workers’ compensation?
If an employee gets injured at work or falls ill, they may have to take time off work. In more serious cases, they may need a lot of time off work. It’s possible they may even be unable to return to work at all.
Is employers’ liability insurance required by law?
If you have employees, 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.
What is ELTO?
The Employers’ Liability Tracing Office (ELTO) is an independent organisation set up by the insurance industry to make it easier for employees to trace a former employer, or employer's insurance policy.
Do I have to provide my Employer Reference Number?
Providing your Employer Reference Number when you buy an employers’ liability policy is not a legal requirement, but it is a requirement of the Financial Conduct Authority.
What's the difference between public liability insurance and employers’ liability insurance?
Almost everything! It's a good idea to read about public liability insurance and employers' liability insurance.
Where should an employers’ liability certificate be displayed?
You may have a digital copy and a hard copy. The printed original could be displayed with other essential documents that must be shown, such as Health and Safety information. A digital version might be stored somewhere employees can access, such as a shared network drive.
Who needs employers’ liability insurance?
If you employ at least one person, you will need employers’ liability insurance. This includes all types of employees: from part-time and volunteers to trainees.
Full details of our Terms & Conditions, Limits, Excesses and Policy Exclusions can be found in our policy wordings. These guides refer to our Tradesman's Insurance policy. Trade Direct do not offer advice relating to insurance, and you need to ensure that insurance you choose meets your demands and needs.