Employers' Liability

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Insurance for Employers

As your business grows, so does the need for staff—whether full-time employees, temporary workers, or contractors. With that growth comes increased responsibility, including the risk of an employee becoming ill or injured due to their work. Employers’ Liability Insurance (also known as EL insurance) is a legal requirement for nearly all UK businesses with employees. Its purpose is to protect your business against claims arising from injury or disease sustained by employees in the course of their work.

You can often save both time and money by adding Employers’ Liability cover to your existing business insurance policy, alongside Public Liability Insurance and any other cover your business requires.

Do I Have to Insure Temporary Workers?

If your business employs temporary or contract staff, it’s essential to have Employers’ Liability Insurance in place to cover them as well. Failing to do so may result in non-compliance and leave your business exposed to claims. Tradesman Insurance 4U offers affordable policies tailored to a wide range of industries and business types.

Get in touch today for a quote and find the level of cover that’s right for your business.

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Health and Safety hazard sign

Reduce Your Claim Risk

Strong health and safety practices are your first line of defence. Taking proactive steps to reduce the risk of accidents, illness, or injury significantly lowers the chances of facing an employee claim.

Stay up to date with relevant regulations and industry best practices. Conduct regular workplace risk assessments in collaboration with your team, and review these assessments at least annually to ensure ongoing compliance and safety.

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Get the Details Right

You are legally required to have Employers’ Liability cover in place for every full-time employee for every day they work. Failure to do so can result in fines of up to £2,500 per day.

When setting up or renewing your policy, make sure your insurer has an accurate staff count. This includes casual, part-time, and seasonal workers. However, immediate family members working for you are usually exempt from this requirement.

Claims from former employees

Claims from Former Employees

Not all claims happen while someone is still on your payroll. In some cases, illnesses or injuries develop after an employee has left your business—especially conditions that take time to present symptoms.

For example, repetitive strain injuries like Carpal Tunnel Syndrome or occupational illnesses may only emerge after the employee’s departure. If the condition can be linked to their time working for you, they may have a valid claim.

Employers’ Liability Insurance provides protection against these delayed claims, offering peace of mind even after employees move on.

Get the right insurance for your business

  • Review your policy documents carefully before you commit — know exactly what’s included and excluded.
  • Choose a suitable level of cover so you’re not left underinsured if a claim arises.
  • Accurately estimate the value of your tools and equipment — this ensures you can replace them if lost, stolen, or damaged.
  • If you employ anyone (even part-time or at home), you’re legally required to have employers’ liability insurance — fines for not having it can be up to £2,500 per day.
  • Even when not required by law, the right insurance helps protect your livelihood and keep your business running smoothly.

Do I Need Employers’ Liability Insurance?

If your business employs staff—even on a casual or part-time basis—you are legally required to have Employers’ Liability Insurance. This also applies if you hire contractors. However, there are some exemptions: self-employed individuals with no employees, and those who only employ close family members, are generally not required to have this cover.

Tradesman Insurance

What is Employers’ Liability Insurance?

Employers’ Liability Insurance protects your business against the cost of compensation claims made by employees who suffer illness or injury as a result of their work. This includes both current and former employees.

It’s a legal requirement if your business employs one or more people, and failure to have cover in place can result in fines of up to £2,500 per day.

Beyond legal compliance, Employers’ Liability Insurance offers valuable financial protection—helping you manage the potentially high cost of legal claims and compensation payouts, all at an affordable rate.

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