What is Employers’ Liability insurance?

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 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.

Do I have to provide my Employer Reference Number for Employers' Liability insurance?

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

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Q: Is Employers’ Liability insurance required by law?

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.

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?

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.

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?

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

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?

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

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

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

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

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.

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Employers' Liability insurance FAQs