Employers' Liability Insurance

Although employers' liability insurance is compulsory there are a few exceptions, including: 

• Businesses that only employ immediate family members (unless your family business is incorporated as a limited company, in which case the insurance is compulsory).  
• Sole traders - if you are the only person working for the business and providing you aren't incorporated into a limited company. 
• If you employ staff and none of the above exceptions apply to you then it's safe to say you'll need to take out this type of insurance. 

If you only work with freelancers who provide their own tools and services then they will be responsible for their own insurance, and you won’t need employers’ liability insurance.  

But if you employ anyone and they work for you on a regular basis, they could be classified as a worker. Speak to a broker if you are unsure if you need employers’ liability.

Yes, if you have temporary workers or seasonal staff, then employers’ liability insurance is a legal requirement. If you only employ extra staff for Christmas or busy periods, you can amend your policy to cover them for a limited amount of time. Speak to a broker to arrange this.

No, employers’ liability insurance covers claims made by employees, while public liability insurance covers claims made by third parties, such as customers or members of the public, for injuries or damage caused by your business activities.

An employers’ liability policy should cover staff wherever they’re working, including in their own homes. Most insurers will include home-working cover, but you should always check the policy wording to make sure. Always make your broker aware you have staff working from home when discussing your policy needs.

This can vary between insurers, but it’s important that your policy covers all of your employees in all working environments. This includes at your business premises, on other sites, at home, and any other places they carry out work duties.

Operating without employers' liability insurance when required by law could result in fines of up to £2,500 for each day you’re not properly insured. You could also be fined £1,000 if you do not display your EL certificate or refuse to make it available to inspectors when they ask.  

Yes, most policies include coverage for claims from past employees, even if they file a claim after they’ve left your employment, as long as the injury or illness occurred while they were working for you.