Yes, in most cases, Employer’s Liability insurance is a legal requirement in the UK.
If you employ anyone, UK law requires you to have employer’s liability insurance in place. This applies to full-time and part-time staff, temporary workers, apprentices, casual labour and, in many cases, contractors. If you are responsible for their work, you are classed as an employer.
At Portal Broking Group, we regularly help businesses arrange Employer’s Liability Insurance to fit their requirements best.
What Does Employer’s Liability Insurance Cover?
Employers’ liability insurance helps protect your business if an employee becomes ill or is injured because of their work and makes a claim against you.
Claims can arise from accidents, manual handling injuries, slips and trips, or long-term illness caused by working conditions. Without valid cover, your business would be personally responsible for legal costs and compensation.
What Does the Law Require?
By law, employers’ liability insurance must provide a minimum of £5 million cove however, most UK policies offer £10 million as standard. This will vary between insurers and it’s best to double check.
You must also display your employer’s liability insurance certificate either physically or digitally so employees can easily access it.
Are There Any Exemptions for Employer’s Liability Insurance?
There are limited exemptions, but they are narrow and often misunderstood.
You may not need employers’ liability insurance if you are a sole trader with no staff. In some cases, businesses that only employ close family members may also be exempt but this depends on how the business is structured and who controls the work.
This is a common grey area, and one we frequently clarify during reviews.
If you’re unsure whether you legally need cover, it’s worth checking before there’s a problem.
What are the penalties for not having Employer’s Liability Insurance?
Businesses can be fined up to £2,500 per day for not holding valid employers’ liability insurance. Additionally, there can be fines if you can’t produce proof when asked.
What to do next?
Employer’s liability insurance isn’t optional for most UK businesses; it’s a legal safeguard for both you and your employees.
Book a business insurance review with Portal Broking Group to make sure your cover meets UK legal requirements and actually reflects how your business operates. Call us on 01829 706436 or complete our contact form and we’ll be in touch as soon as possible.