Employer's Liability Insurance

Employer's Liability Insurance

Employer's liability insurance covers the cost of compensating workers who are injured or ill while working for your company.

Employer's Liability Insurance


Who needs it?

As an employer, you are legally obliged to take out employers liability insurance. If you do not have proper insurance, you could face fines of up to £2,500 per day.

Employer's liability insurance usually covers compensation costs and any related legal costs. Check with your insurance company to find out exactly what your policy covers.


Exempted companies

Some companies do not require employers' liability insurance, including:

  • company without employees
  • Family business employing only family members

Who does it cover?

Your policy should cover claims made by:

  • all permanent employees
  • Contract, Casual and Seasonal Workers
  • Subcontractors who rely entirely on labour
  • An employee is someone who:
    • Withhold NI contributions and income tax from their salary
    • Their location, working hours and working conditions are controlled by their employer
    • If they are unable to work, their employer cannot replace them

Your policy should also cover claims made by:

  • Temporary workers, including students and interns
  • Volunteers, advisors, judges and law enforcement officers

Check with your insurance company to make sure your employer's liability insurance covers everyone who works at your company.

Employer's Liability Insurance

Buy Employer's Liability Insurance

You can buy employer's liability insurance directly from your insurance company or from a professional broker.

You will need to pay at least £5 million in damages, but most policies provide coverage for at least £10 million.

Your cost depends on many factors, including:

  • the nature of your business
  • the number of employees you employ
  • Your previous damage history with the insurance company

Employee Injury or Illness Claims

If, as an employee, you are involved in an accident or work-related illness, you should contact your employer, who will contact their insurance company to file a claim.

If the company you work for goes out of business, you can still file a claim directly through that company's insurance company. You can use the Employer Liability Tracing Office to find your previous employer's insurance company.

Employer's Liability Insurance



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