Understanding Employers' Liability insurance

Understanding the ins and outs of business insurance can be a struggle. Learn the lingo with our guide.

Safety and insurance

5 February 2019

Whether it’s blue-sky thinking or low-hanging fruit, getting to grips with cliched business speak can be frustrating. In fact, a study by Londonoffices.com found that rather than boosting productivity levels, this business-led lingo only succeeds in frustrating workers up and down the length of the country.

Business insurance from just £110 a year*

  • Pay for the insurance you need – not the bits you don’t
  • Guided online quotes – to point you in the right direction

*10% of our customers paid this or less between October and December 2020.

Not all claims are eligible – each claim is assessed on a case by case basis (see how you can increase your chance of getting your claim paid in 24 hours here). In 2018 we paid 8% of claims in 24 hours and 22% in 48 hours – and we’re working to improve that.

Translating complicated business insurance terminology can be just as confusing. But getting the protection that’s right for your business shouldn’t be made difficult by out-of-touch insurance speak.

At AXA we believe business insurance should be straightforward, not stressful. That’s why we’ve decided to strip the jargon out of business insurance with our 6 Ws of Business Insurance, by focusing on the who, what, why, where, when and hows of business insurance products.

Think plain English over jargon. Clarity over complexity. Short and snappy over rambling descriptions.

So, make sense of employers’ liability insurance with our guide and get back to what you do best: working hard for your customers.

What is employers’ liability insurance?

Employers' liability insurance is a legal requirement under the Employers’ Liability Act 1969. It’s there to protect your employees if they get injured or become ill as a result of working for your business. It covers the damages, compensation costs and legal fees that a current or ex-employee is entitled to as a result of illness or injury which may have been caused while working for your business.

Why do I need employers’ liability insurance?

If you have employees, employers’ liability is a legal requirement. Failing to have this cover in place could result in your business facing a fine of up to £2,500 for each day that you’re uninsured. 

However, there are businesses that are the exception to the rule. Public organisations and businesses that only employ close family members (as long as they’re not incorporated as limited companies) aren’t required to have employers’ liability insurance in place when operating. As you still have a duty of care, you may still want to consider employers’ liability in these cases.

When would my business need employers’ liability insurance?

We all like to think our workplaces are safe as houses. But injuries can happen to even the most safety conscious of businesses – and when you least expect them. And if an employee gets injured or becomes ill as a result of working for you, they may try to claim compensation, resulting in bills that could be financially devastating.

Whether it’s your personal assistant who is badly injured after tripping over a loose cable while walking in the office, or a former employee who has been diagnosed with an illness related to harmful chemicals they were exposed to while in your employment, workplace incidents come in many forms.

If an employee is injured in these work-based accidents and the court orders you to pay compensation for injury, loss of income and medical expenses, employers’ liability insurance can cover these fees and the associated legal costs.

Who needs Employers’ Liability Insurance?

As a business owner, you have a duty of care to anybody working for you. And every business with any employees, even on a part time or voluntary basis, needs to have employers’ liability insurance. It’s the law. So regardless of whether your business has full-time or part-time employees, hires self-employed contractors, temporary staff, apprentices, volunteers, or individuals taking part in work experience or training schemes, employers’ liability insurance is a must-have.

How much Employers’ Liability Insurance does my business need?

Your business is unique. We get it. That’s why at AXA, you can tailor your business insurance to suit your needs, not someone else’s. Included as standard with AXA Employers’ Liability Insurance, you get £10 million worth of cover, cover to pay health and safety law prosecution costs, £250 compensation per day if you need to attend court to defend a claim made against you. AXA also gives you access to our 24-hour legal helpline.

Where do I get Employers’ Liability Insurance?

With AXA, getting the employers’ insurance your business needs couldn’t be simpler. Get a free quote online today and you can tailor your insurance to meet your needs, plus get a 10% discount as well. Or, if you’d prefer, give us a call on 0330 159 1520 and get a quote from one of our experienced advisors who’ll give you the price that’s right for your business.

Plus, once you’ve made an employers’ liability claim, you’ll be able to track the whole thing from start to finish online using our online claims tracking tool. Available via desktop, tablet and mobile, you’ll have 24/7 access to all the key information you need when you need it most.

Business insurance should be accessible, not alienating. That’s why we’ve made it our mission to make business insurance simple. Because life’s too short to get bogged down by complex insurance jargon – your time’s better spent running your business.

Work hard, insure simple with AXA

Running a business is hard work. That’s why we’re doing all we can to make insurance simpler. Get an employers’ liability quote from as little as £42* with AXA – simple.

* 10% of our customers paid this or less between October and December 2020.