Employers' Liability insurance FAQs
Questions and answers that relate to employers' liability cover, which is added automatically to your tradesman liability quote if you have employees or trainees.
This information is provided as a guide only, and if you have any doubts or questions, you can give our friendly team a ring on 0800 0280 380.
What is the purpose of employers' liability insurance?
This insurance pays the damages, compensation, and legal costs if one of your employees, or ex-employees, claims compensation for a work-related illness or injury suffered as a result of working for your business.
What should employers' liability insurance cover?
It should protect you and your business in the event a past or present employee suing your business for an injury or illness caused by working for you.
Is employers’ liability insurance a legal requirement?
Legally, you are required to get employers’ liability insurance as soon as you become an employer. Your policy must cover you for at least £5 million, and come from an authorised insurer.
Do I need employers' liability insurance if I am self employed?
If you have at least one employee, you probably need employers’ liability insurance. The minimum legal requirement is to have cover of £5 million.
Read more about employers' liability insurance for self-employed people
Who does employers' liability cover?
This covers your business and you (as the employer). It protects you by paying any award for damages, compensation, or legal fees (up to the limit of the policy).
Is employers' liability insurance compulsory?
You are legally required to have employers’ liability insurance if you are an employer.
Read more about whether employers' liability insurance is compulsory
Why is employers’ liability insurance important?
It’s an insurance policy that protects your business should you be sued by a current or former employee for an illness or injury suffered as a result of working for you.
Read more about the importance of employers' liability insurance
When is employers’ liability insurance required?
Any business that employs someone must have employers’ liability insurance.
Read more about whether employers' liability insurance is required
How does employers' liability work?
If a claim made against your business by current or former employees is successful, your insurance will pay the damages, compensation, and legal fees (subject to the terms of your policy).
Employers' liability when working from home
As an employer, you are legally responsible for the health and safety of all employees. This includes those working from home.
Read more about employers' liability insurance when working from home
Is employers' liability the same as professional indemnity?
Professional indemnity is not required by law, but it is recommended as the cost of a successful claim can be financially devastating.
Read more about employers' liability insurance and professional indemnity insurance
How much employers' liability do I need?
You must have cover worth at least £5 million, but many employers’ liability insurance policies provide cover up to £10 million as part of their standard cover.
Who is employers' liability cover to protect?
If your business employs anyone, you must be insured. ‘Employees’ include volunteers, friends, trainees, part-time staff and some sub-contractors.
Can I get temporary liability insurance?
For a business hosting a one-off event, temporary cover is a common requirement. However, if your business hosts several events in a year, an annual policy will be more appropriate.
How much is UK employers' liability insurance?
A number of factors are considered when calculating your premium, including the type of work you do, business size and claims history.
Is employers’ liability the same as workers’ compensation?
If an employee gets injured at work or falls ill, they may have to take time off work. In more serious cases, they may need a lot of time off work. It’s possible they may even be unable to return to work at all.
Read more about employers' liability insurance and workers' compensation
Is employers’ liability insurance required by law?
If you have employees, employers’ liability insurance is a legal requirement. This is governed by The Employers’ Liability (Compulsory Insurance) Act 1969 in Great Britain, Northern Ireland, the Isle of Man and the Channel Islands.
What is ELTO?
The Employers’ Liability Tracing Office (ELTO) is an independent organisation set up by the insurance industry to make it easier for employees to trace a former employer, or employer's insurance policy.
Do I have to provide my Employer Reference Number?
Providing your Employer Reference Number when you buy an employers’ liability policy is not a legal requirement, but it is a requirement of the Financial Conduct Authority.
What's the difference between public liability insurance and employers’ liability insurance?
Almost everything! It's a good idea to read about public liability insurance and employers' liability insurance.
Read more about the difference between public liability insurance and employers' liability insurance
Where should an employers’ liability certificate be displayed?
You may have a digital copy and a hard copy. The printed original could be displayed with other essential documents that must be shown, such as Health and Safety information. A digital version might be stored somewhere employees can access, such as a shared network drive.
Who needs employers’ liability insurance?
If you employ at least one person, you will need employers’ liability insurance. This includes all types of employees: from part-time and volunteers to trainees.
What is the difference between employers’ liability insurance and public liability insurance?
If you’re a tradesperson working in the construction industry, it is essential to have the correct insurance in place. This includes employers’ liability insurance and public liability insurance.
Read more about the difference between employers’ liability insurance and public liability insurance
Is employers’ liability insurance the same as public liability insurance?
Employers' liability insurance provides your business with protection should an employee successfully claim for an injury or illness suffered as a result of working for your business.
Is it a legal requirement to have employers' liability insurance?
As soon as you employ someone, you are legally required to have employers’ liability insurance. You will also need to display your insurance certificate somewhere that is visible to and accessible by employees.
Read more about the legal requirements of employers' liability insurance
Who is exempt from employers’ liability insurance?
Nearly every business or person who employs someone must have employers’ liability insurance.
Read more about who is exempt from employers’ liability insurance
Do I need employers' liability insurance if my staff are self-employed?
You may need insurance if you work in the construction industry and run your own business, especially if you have employees.
Read more about employers' liability insurance and self-employed staff
Do I need employers’ liability insurance for sub-contractors?
In some circumstances, your sub-contractors may be considered ‘employees ’.
Read more about employers’ liability insurance and sub-contractors
Any more questions?
If you have a question that's not answered here, please ring us on 0800 0280 380.
Full details of our Terms & Conditions, Limits, Excesses and Policy Exclusions can be found in our policy wordings. These guides refer to our Tradesman's Insurance policy. Trade Direct do not offer advice relating to insurance, and you need to ensure that insurance you choose meets your demands and needs.