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.

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 0800 0280 380.

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.

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What should employers' liability insurance cover?

It should protect you and your business in the event a past or present employee suing your business for an injury or illness caused by working for you.

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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.

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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).

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Is employers' liability insurance compulsory?

You are legally required to have employers’ liability insurance if you are an employer.

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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.

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When is employers’ liability insurance required?

Any business that employs someone must have employers’ liability insurance.

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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).

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Employers' liability when working from home

As an employer, you are legally responsible for the health and safety of all employees. This includes those working from home.

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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.

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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.

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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.

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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.

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How much is UK employers' liability insurance?

A number of factors are considered when calculating your premium, including the type of work you do, business size and claims history.

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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.

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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.

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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.

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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.

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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.

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Any more questions?

If you have a question that's not answered here, please ring us on 0800 0280 380


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