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Employers Liability Insurance for Small Businesses

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Essential Protection Against Employers Liability Claims

Employers liability insurance covers the cost of compensation payments and legal expenses, arising from an employee compensation claims against you for work-related injuries or illness.

Why do you Need Employers Liability Insurance Cover?

In most cases, it’s a legal requirement for businesses with employees and comes as part of a packaged insurance product.

Key Features and Benefits

  • Access to a 24-hour legal helpline.
  • Range of cover available, often £10,000,000 as standard.
  • Legal fees, legal defence costs and compensation costs.
  • £250 court attendance costs per day to defend a claim.
  • Legal costs in connection with criminal inquiry into manslaughter/corporate manslaughter, culpable homicide or corporate homicide.

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What is Employers Liability Insurance?

Employers liability cover ensures your business can fulfil your legal and financial obligations when employees are harmed due to their work activities. Here are a few common risks that employers liability insurance typically covers:

  • Workplace injuries: Injuries or accidents that occur on the job, such as slips, falls, or equipment-related incidents.
  • Occupational illnesses: Illnesses or diseases that employees may develop as a result of their work activities, such as respiratory problems, repetitive strain injuries, or exposure to harmful substances.
  • Legal expenses: Costs associated with defending against employee claims, including legal fees, court expenses, and settlements or judgements.
  • Medical expenses: Medical costs incurred by employees due to work-related injuries or illnesses, such as hospitalisation, doctor visits, medications, or rehabilitation.
  •  Compensation pay-outs: Awarded to employees for pain and suffering, loss of earnings, or long-term disability resulting from work-related incidents.

Temporary staff and contractors: Temporary workers, subcontractors, or contractors working on behalf of the insured employer. As soon as you become an employer, you should have employers liability insurance in place and cover should be for at least £5 million. You are at risk of being fined £2,500 a day for not being properly insured.

By having employers liability insurance in place, you can both safeguard your business and demonstrate your commitment to the well-being and safety of your workforce.

What's Not Covered?

Public liability

While public liability insurance covers you for any injury or damage to third parties, it doesn’t cover the people you employ. That's why employers liability cover is so important.

Personal accident

Employers liability insurance will not cover you if you’re injured outside of your business activities. You’ll need to take out a personal accident policy to keep money coming in if you are unable to work due to your injuries.

Your property and equipment

You should consider buildings cover and/ or tools and equipment cover. This can cover the cost of repair or replacement should you need to make a claim for loss or damage to your own property and equipment, as a result of your business activities.

Professional indemnity insurance

This cover protects your business against claims from clients for negligence, errors, or omissions in your services or advice. It covers legal costs and compensation payments.

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Employers Liability Insurance FAQs

A

Yes. Employers liability is a compulsory insurance for anyone employing staff, including volunteers. If you deduct income tax and national insurance from your employees' salary and you control the location, hours and conditions of their work, you'll need employers liability insurance. However, if you’re not a limited company and only have immediate family members working for you, it’s not a legal requirement.

It’s still a good idea to have the protection in place in case one of your team falls ill or gets injured while at work. Your legal costs and any compensation pay-outs will be covered.

A

There are a few exceptions to the rule including:

  • A limited company, with only one person employed who owns more than 50% share of the capital.
  • Self-employed who work on their own and do not employ anyone else for work.
  • Equal partnerships with no employees.
  • A company with only direct family members. However, this exception does not apply to a family business which is  incorporated as a limited company.

Even if your business falls within one of these categories, it may still be a good idea to take out the cover.

A

Most employers are required to have cover for at least £5 million. You could face fines up to £2,500 a day if you aren't adequately covered.

A

The cost of employers liability insurance depends on individual needs. Our policies are flexible and can be adapted to fit your requirements. Whether you run a 'one-person operation' or a medium-sized firm, we can match you with the right policy at the right price.

A

An employer's liability certificate is a document that proves your business has the necessary insurance coverage to protect against claims made by employees who are injured or become ill as a result of their work. It is a legal requirement for most businesses in the UK that employ staff. The certificate must be displayed in the workplace, and it shows that you are compliant with the Employers' Liability (Compulsory Insurance) Act 1969.

A

It covers the costs associated with claims made by employees who suffer injuries or illnesses due to their work. This includes:

  1. Compensation Costs: It pays for compensation claims made by employees for injuries or illnesses sustained while working for you.
  2. Legal Fees: It covers legal expenses incurred in defending against claims, including court costs.
  3. Peace of Mind: It ensures that your business complies with legal requirements, reducing the risk of fines or penalties for not having the necessary coverage.
  4. Financial Protection: It helps safeguard your business's finances by covering potentially high costs associated with employee claims, which could otherwise impact your business's stability.

Overall, it provides essential protection for both your employees and your business.

* Please click here to view our pricing disclaimer.

** Standard and optional cover may differ dependent upon insurer.

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SME Insurance Services (smei) is a trading name of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority for General Insurance Distribution and Credit Broking (Firm Reference No. 307511). Copyright © 2024 Marsh Ltd. Registered in England and Wales Number: 1507274, Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU. All rights reserved.

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