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Employers Liability Insurance

Employers’ Liability Insurance is a legal requirement under the Employers’ Liability Act 1969. It covers damages, compensation costs and legal fees should one of your employees be injured or becomes ill due to the work they do for your company and decides to make a claim against you.

It could cost you greatly if you fail to hold adequate Employers’ Liability Insurance. If you employ even one member of staff on any basis including volunteers and you don’t have Employers Liability Insurance, you could face being fined a hefty £2,500 for every day you are uninsured… that’s £17,500 for just one week of no insurance!!

Employers’ Liability Insurance can be purchased as a standalone product however, depending on your insurance requirements, it can also be incorporated into a Business Insurance policy, such as a Commercial Combined Policy or an Office Policy, which would include other insurance products such as Employers’ Liability, Material Damage etc. It is usually bought alongside Public Liability Insurance.

Do I need Employers Liability Insurance?

Employers’ Liability Insurance is a requirement for any business that has employees, such as:

  • Full-time and part-time employees
  • Self-employed contractors you hire
  • Temporary staff, apprentices and volunteers
  • People taking part in work experience or training schemes.
  • Limited companies that have more than 1 director

However, there are some exceptions:

  • if you are a family business and only employ close members of your family (although this does not apply to family businesses incorporated as limited companies)
  • most public organisations, health service bodies, and some other organisations financed by public funds
  • limited companies where you, as the owner, are the only employee and provided you own 50% or more of the company’s share capital.