Employers Liability Insurance

Employers liability insurance is a legal requirement in the United Kingdom for all businesses, whether these be sole traders, partnerships or limited companies that employ people.

The cover protects the policyholder in respect of their legal liability for injury or damage sustained by employees happening in the course of their employment. In addition to any compensation awards that may be made against the employer the policy also provides for the cost of the insured’s legal defence.

What is the legal requirement for employers liability insurance?

The Employers Liability (Compulsory Insurance) Act 1969 requires all employers to hold a current employers liability insurance policy. The actual legal requirement is for a policy with a limit if indemnity of £5M although in practice policies are generally issued with a standard limit of £10m and this can be increased upon request.There are few exceptions to the legal requirement for employers liability insurance and these are

• Limited companies where the only employee is at least a 51% shareholder in the business.
• Businesses where the employees enjoy close family ties with the principal, such as daughter or son.
• Certain government departments and institutions.

Even where the cover is not a legal requirement, it is often prudent to arrange the insurance for the benefit of employees in the event of work related injury or disease,

Employers liability insurance is not generally available as a standalone class of insurance in the UK and it is usually taken in conjunction with public liability insurance or as part of a broader commercial insurance arrangement such as office, shop or commercial combined insurance.

As specialists in the arrangement of liability cover, we provide instant access to a wide range of highly competitive quotes for employers liability insurance from our panel of leading insurers and our own bespoke liability insurance arrangements.

Our team are on hand to assist you with any queries you may have and to discuss your requirements so call us directly or apply on-line for instant access to employers liability insurance cover.