Employers Liability Insurance
Employers liability insurance is a legal requirement for most businesses in the UK and is designed to protect employers against compensation claims made by employees who suffer injury or illness as a result of their work. Whether you run a small business, employ a single member of staff, or manage a larger organisation, having the right employers liability insurance in place is essential.
This type of insurance protects your business financially if an employee claims that their work has caused them injury, illness, or long-term health problems. Without adequate employers liability insurance, your business could face significant legal costs, compensation payments, and fines.
At CDC Insurance, we arrange tailored employers liability insurance for businesses across the UK, ensuring you remain compliant with the law and properly protected.
What Is Employers Liability Insurance?
Employers liability insurance covers your legal liability to pay compensation if an employee becomes injured or ill as a result of working for you. This can include both physical injuries and work-related illnesses that develop over time.
Claims can arise from accidents in the workplace, repetitive strain injuries, exposure to hazardous substances, or long-term health conditions caused by working environments. Even businesses with strong health and safety practices can face claims, which is why employers liability insurance is so important.
The policy typically covers compensation payments, legal fees, and associated costs involved in defending a claim.
Is Employers Liability Insurance a Legal Requirement?
In most cases, employers liability insurance is a legal requirement in the UK. If you employ anyone, even on a part-time, temporary or casual basis, you are usually required by law to have this cover in place.
The minimum level of cover required by law is typically £5 million, although most policies provide £10 million as standard. You must also display your employers liability insurance certificate in the workplace or make it available digitally to your employees.
Failure to have valid employers liability insurance can result in fines of up to £2,500 per day, making it a serious legal and financial risk for any business.
Who Needs Employers Liability Insurance?
You will usually need employers liability insurance if you employ staff, including full-time employees, part-time workers, temporary staff, apprentices, or volunteers in many circumstances.
This applies to a wide range of businesses, including shops, offices, tradespeople, contractors, professional services, manufacturers, hospitality businesses and more.
Some limited exceptions exist, such as certain family-run businesses, but for the vast majority of employers, employers liability insurance is mandatory.
Exempt Businesses
Not all businesses require this type of insurance policy. Below are a few examples of these exempt businesses:
- Companies that have no employees: These types of businesses have no use for an employer’s liability insurance
- Businesses that only employ family members
Employer’s Liability Insurance Exclusions
Employer’s liability insurance policies may come with the below exclusions:
- Fines & Penalties: If a business is fined by a governing authority, usually, employer’s liability insurance will not cover this.
- Asbestos Exposure: Most employer’s liability insurance policies do not cover any claims due to asbestos exposure, unless explicitly stated.
What Does Employers Liability Insurance Cover?
Employers liability insurance typically covers claims made by employees for injuries or illnesses that are caused by their work. This can include slips, trips and falls, manual handling injuries, accidents involving machinery, and long-term health conditions.
It can also cover claims for industrial diseases or conditions that develop over time, such as repetitive strain injury or illnesses caused by exposure to hazardous materials.
The policy usually covers compensation payments, legal defence costs, court fees and settlements, helping to protect your business from potentially large and unexpected financial losses.
Why Employers Liability Insurance Is So Important
Even with good health and safety procedures in place, accidents can still happen. If an employee is injured and you are found to be legally responsible, the cost of compensation and legal fees can be substantial.
Employers liability insurance protects your business from these risks and ensures that employees who suffer injury or illness are properly compensated.
It also helps demonstrate that your business is responsible, compliant with the law, and committed to protecting the welfare of its staff.
How Much Employers Liability Insurance Do I Need?
The legal minimum level of cover is usually £5 million, but most insurers provide £10 million as standard. The amount of cover you need may depend on the size of your business, the number of employees you have, and the level of risk associated with your work.
Businesses operating in higher-risk industries, such as construction, manufacturing or engineering, may require higher limits or more specialist cover.
At CDC Insurance, we can help assess your business and recommend the appropriate level of employers liability insurance for your specific situation.
Employers Liability Insurance and Public Liability Insurance
Employers liability insurance is often arranged alongside public liability insurance, but they cover different risks. Employers liability insurance protects you against claims from employees, while public liability insurance covers claims made by members of the public.
Many businesses choose to combine both covers as part of a broader business insurance package to ensure they are fully protected.
Why Choose CDC Insurance for Employers Liability Insurance?
At CDC Insurance, we specialise in arranging tailored business insurance solutions for companies of all sizes across the UK. We take the time to understand your business, your workforce and your risks.
We work with a wide range of insurers to find competitive employers liability insurance that meets your legal obligations and provides the right level of protection.
Our team will explain your cover clearly, help you stay compliant, and ensure there are no gaps in your protection.
Get a Quote for Employers Liability Insurance
If you employ staff, employers liability insurance is not just important, it is usually a legal requirement. Let CDC Insurance help you arrange the right cover for your business.
Contact us today for a tailored employers liability insurance quote and expert advice. Call us on 01843 861251 or get in touch online using our contact form.
Employers’ Liability Insurance: FAQ
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