WHAT IS EMPLOYERS' LIABILITY INSURANCE?

Employers are responsible for the health and safety of their staff when they are at work. If your business employs more than one person, it’s a legal requirement to have an employers’ liability insurance policy in place.

For many businesses, this means employers’ liability insurance is compulsory. So, what does employers’ liability insurance cover? By definition, employers’ liability covers the cost of any claims a staff member might make for being injured or ill as a result of their employment. Employers’ liability policies also protect your business against the costs of medical treatment, compensation, and any related legal fees, meaning your company will be as protected as possible.

With Tradesure, you can get employers’ liability insurance quotes for tailored policies to suit any type of business. You can also choose the level of cover you need, with optional extras such as adding public liability insurance on a combined policy.

HOW DOES EMPLOYERS' LIABILITY INSURANCE WORK?

Employers’ liability insurance protects your business against compensation costs if any of your employees suffers an illness or injury as a direct result of their employment.

This is especially important for anyone working in a mechanical, construction or trade environment where there is a high risk of injury. The law says that, as a minimum, your employers’ liability insurance in the UK should provide cover for £5 million. Tradesure employers’ liability insurance provides cover for £10 million as standard, with higher rates of cover available.

WHO NEEDS EMPLOYERS' LIABILITY INSURANCE?

We sometimes get asked, ‘do I need employers’ liability insurance?’. If you have more than one employee, it is compulsory for you to have employers’ liability cover. However, some employers may be exempt from taking out employers’ liability policies if:

  • Your employees are based abroad
  • You employ students on work experience programs
  • You have volunteers
  • You have staff who exclusively carry out unpaid work
  • You are a sole trader who only employs close family members and you aren’t running a limited company

DO I NEED EMPLOYERS' LIABILITY INSURANCE COVER?

We are often asked whether employers’ liability insurance is compulsory. Without the correct employers’ liability cover, you can be fined up to £2,500 for each day that your business doesn’t have cover. Even if you don’t get fined, a claim brought by an employee for injury or work-related illness could put your business at financial risk.

When comparing employers’ liability insurance policy, you should be sure that you have the correct level of cover in place to avoid any of these risks. Read the government’s guide to compulsory employers’ liability insurance here.

WHAT DOES EMPLOYERS LIABILITY INSURANCE COVER?

Having an employers’ liability insurance certificate in place means you are covered for legal costs and compensation payouts. This could include medical costs incurred from an employee. For example, if you are taken to court by an employee because of a health and safety breach, your costs are covered by your employers’ liability policy.

How much is employers’ liability insurance?

As with any business insurance, the price of employers’ liability policies will depend on different things. Factors which will affect your employers’ liability insurance cost include:

  • the industry your business is in
  • how your business operates
  • the level of risk to your employees

As you compare employers’ liability insurance quotes, you should know that many insurance companies will calculate your premium based on how likely you are to make a claim and its potential costs. You can reduce the cost of employers’ liability insurance by improving health and safety policies at work to protect your staff.

GET AN EMPLOYERS' LIABILITY INSURANCE QUOTE

To request an online quote, fill out the form below and our team will be in touch.

FREQUENTLY ASKED QUESTIONS

Is employers liability insurance a legal requirement?

Yes, if you have employees you are legally required to have employers’ liability insurance. This is the case even if you only employ one person. Legally, the minimum employers liability insurance you need must cover your business for £5 million. Tradesure employers liability insurance provides cover for £10 million as standard. 

Am I an employer?

You’re an employer if:

  • You pay someone a regular wage.
  • You deduct National Insurance contributions and Income Tax from their pay. This applies to even one person. For example, if you are self-employed but take someone on for contract work, you will need insurance. The same rule applies for those who onboard staff on a part time basis.

How long does employers’ liability insurance last?

A Tradesure employers’ liability insurance policy lasts for 12 months.

Do I need to retain copies of my employers liability insurance certificate?

Yes, you must retain copies of expired insurance certificates for at least 40 years. This requirement applies only to policies that were taken on December 31, 1998 or later. However, it’s important that you keep records of your previous cover in case your staff makes claims for injury or illness resulting from past work at your company.

Is employers liability included with other types of cover?

Although employers liability cover doesn’t come as standard with any other policies, you can choose a combined policy which includes both public and employers liability insurance. With Tradesure, you can tailor your combined liability insurance alongside additional cover options such as:

  • Product liability insurance
  • Directors’ and Officers’ insurance
  • Professional indemnity insurance
  • Trustee insurance

What is the difference between employers liability and public liability insurance?

Employers’ liability insurance is a legal requirement for employers which doesn’t cover members of the public. It protects businesses against claims due to employee injury or work-related illness

Public liability insurance is not required by law and doesn’t cover staff. It covers claims from public members for injury of damage. 


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