Question 1

What is the purpose of employers' liability insurance?

Accepted Answer

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.

Read more about the purpose of employers' insurance

Question 2

What should employers' liability insurance cover?

Accepted Answer

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.

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Question 3

Is employers’ liability insurance a legal requirement?

Accepted Answer

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.

Read more about employer's liability as a legal requirement

Question 4

Do I need employers' liability insurance if I am self employed?

Accepted Answer

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

Question 5

Who does employers' liability cover?

Accepted Answer

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).

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Question 6

Is employers' liability insurance compulsory?

Accepted Answer

You are legally required to have employers’ liability insurance if you are an employer.

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Question 7

Why is employers’ liability insurance important?

Accepted Answer

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.

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Question 8

When is employers’ liability insurance required?

Accepted Answer

Any business that employs someone must have employers’ liability insurance.

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Question 9

How does employers' liability work?

Accepted Answer

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).

Read more about what employers' liability insurance covers

Question 10

Employers' liability when working from home

Accepted Answer

As an employer, you are legally responsible for the health and safety of all employees. This includes those working from home.

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Question 11

Is employers' liability the same as professional indemnity?

Accepted Answer

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

Question 12

How much employers' liability do I need?

Accepted Answer

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.

Read more about employers' liability cover limits

Question 13

Who is employers' liability cover to protect?

Accepted Answer

If your business employs anyone, you must be insured. ‘Employees’ include volunteers, friends, trainees, part-time staff and some sub-contractors.

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Question 14

Can I get temporary liability insurance?

Accepted Answer

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.

Read more about temporary employers' liability insurance

Question 15

How much is UK employers' liability insurance?

Accepted Answer

A number of factors are considered when calculating your premium, including the type of work you do, business size and claims history.

Read more about employers' liability insurance costs

Question 16

Is employers’ liability the same as workers’ compensation?

Accepted Answer

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

Question 17

Is employers’ liability insurance required by law?

Accepted Answer

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.

Read more about employers' liability insurance and the law

Question 18

What is ELTO?

Accepted Answer

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.

Read more about ELTO

Question 19

Do I have to provide my Employer Reference Number?

Accepted Answer

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.

Read more about providing your Employer Reference Number

Question 20

What's the difference between public liability insurance and employers’ liability insurance?

Accepted Answer

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

Question 21

Where should an employers’ liability certificate be displayed?

Accepted Answer

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.

Read more about displaying your certificate

Question 22

Who needs employers’ liability insurance?

Accepted Answer

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.

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Question 23

Is employers’ liability insurance the same as public liability insurance?

Accepted Answer

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.

Read more about employers and public liability insurance

Question 24

Is it a legal requirement to have employers' liability insurance?

Accepted Answer

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