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 because of illness or injury which may have been caused while working for your business.
What does employers’ liability cover?
Employers’ liability insurance can help you cover the cost of a claim made by an employee who has fallen ill or gotten accidentally injured due to their job.
Employer’s liability insurance covers;
- Full-time and part-time employees
- Salaried or unpaid staff
- Any self-employed contractors you hire
- Temporary staff
- Apprentices or volunteers
- Anyone taking part in work experience or training schemes
Getting an employers' liability quote
It’s easier than you think to get an employers’ liability quote, and you can do it all online. You’ll be asked some routine details about your business and the work you do and get back a quote built tailored to your business needs, so you only pay for what you need.
Use this checklist to make sure you have all the details you’ll need to hand.
Your business name, address, and contact information
When you want your cover to start
How many employees you have
The status of your company (sole proprietor / limited company
Details of any previous claims you've filed
How much does employers’ liability insurance cost?
Our employers’ liability insurance customers pay from £52* for their cover – but the quickest way to find out the price that’s right for you? Get a quote online.
There are several things that affect the cost of your premium, such as:
- Your occupation – the job you do effects your price as some jobs are consider higher risk than others. For examples, those who work at heights or with chemicals or tools.
- Where you work – busier areas with heavy footfall effect your prices due the increased possibility of accident or injury that comes with more people
- How many, if any, staff you have – the more staff you have, the more chance there is for a claim occurring
- Which other covers you choose – the more covers you package to together to create your policy, the more your price will change
Do I need employers' liability insurance?
No matter how careful you are, workplace injuries happen, and in the case of occupational diseases, claims can happen many years down the line. That’s why, if you employ anyone, even temporarily, you need employers’ liability insurance.
If you don’t have employers’ liability insurance, it could cost you dearly and not just from a compensation claim. In fact, you face being fined £2,500 by HMRC for every day you are uninsured.
Employers’ liability insurance vs public liability insurance
Employer’s liability insurance is a legal requirement under the Employers’ liability Act 1969 for any business with employees. It covers anyone that you’re responsible for, including includes employees (both full and part-time), volunteers and trainees. It protects them if they get injured or fall ill as a result of working for you.
Whereas public liability insurance covers your business against claims made by third parties, such as customers, clients, or members of the public. It protects you against an accidentally injuries or property damaged cause by your business or its products.
What other types of business insurance do I need?
There are several other types of cover that you can get to go alongside employers’ liability.
Public liability insurance
If you deal with members of the public in your day-to-day business, then public liability insurance is vital. If someone gets accidentally injured, or their property is damaged because of your business, this cover will protect you against third party claims. We offer cover levels starting at £1 million as standard and ranging up to £10 million†.
Professional indemnity insurance
If you provide advice to customers or clients, then professional indemnity insurance protects you in case your advice causes monetary loss for client and results in claim. We offer cover levels up to £5 million, with specialist policies available for certain professions.
Contents insurance
Most businesses have stock and contents that they need to protect, and if you do we’ve got you covered with our contents insurance for businesses. We can cover you for various things, such as contents, stock, tenants’ improvements, and your shop front. With the option to add cover for loss of money, deterioration of stock and goods in transit too.
Employers' liability claims
No matter how safe and responsible an employer you think you are, workplace injuries and accidents happen.
Here are some examples of the types of claims you might encounter.
Construction - One of construction workers falls from shoddily constructed scaffolding on one of your sites
Electricians - One of your engineers is injured by carrying out work without the right tools.
Gym owner - A personal trainer employed by your gets’ injured because one of the arms on a machine in your gym is loose.
Cleaners - One of your cleaners gets burned due to improper PPE on a job
Retail store - An employee gets a a nasty cut from the broken metal on a broken fixture
Carpet fitters - One of your employees trips over a loose piece of carpet during a fitting and breaks their arm
Is AXA's employer liability insurance right for your business?
There are many reasons to choose AXA employers’ liability insurance. Here are six for starters.
Six great reasons to choose AXA Business Insurance
- You get £10m cover as standard
Employers’ liability insurance must cover you for at least £5 million. But that’s not always enough, so at AXA, we give you £10 million cover as standard. - Court attendance costs are covered
If we need you to be in court because of an employers’ liability claim, we’ll pay you up to £250 per day. - Temporary staff are covered too
Our employers’ liability insurance automatically covers temporary employees for up to 50 working days. - Free access to a tax and legal helpline
With us, you’ll get free access to a tax and legal helpline*** provided by Arc Legal Assistance Ltd. It’s reassurance when you need it most. - Quick and easy online quote
Buying insurance can be tricky business, but our online quote is quick, easy and mobile-friendly. - Cover you can trust
We’ve got a 4.6/5 Feefo rating from customers1 – now that’s cover you can rely on. When you insure with AXA, you can rest easy knowing we’ve got your back if the worst should happen.
Frequently asked questions
What is the employers’ liability insurance register?
The employers’ liability register was created by the Financial Conduct Authority and exists to help consumers by changing the way information about employers’ liability is recorded in the UK. It helps anyone who is trying to establish the insurer for their employer’s liability claims.
Who is responsible for updating the employers’ liability register?
It is the responsibility of the insurer to update the employers’ liability register.
Is employers’ liability a tax-deductible cost?
Yes, employers’ liability insurance is tax deductible as it is classed as an allowable expense.
To learn more about allowable expenses for businesses, check out our guide to allowable expenses for limited companies.
Who's defined as a close family member?
In relation to employers’ liability insurance, HSE defines someone closely related to you as the following people:
- Husband, wife, or spouse/civil partner
- Mother or father
- Stepmother or stepfather
- Grandparents
- Children
- Grandchildren
- Stepchildren
- Siblings
- Half siblings
Our customers say...
Average rating:
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*The guidance is provided on behalf of AXA by Arc Legal Assistance Ltd who are authorised and regulated by the Financial Conduct Authority.
**10% of our customers paid this or less between July and September.
1Rated 4.6/5 based on 16,854 total reviews. Figure accurate as of 25/01/2024.
†Not all occupations are eligible for £10 million coverage, the best way to find out which level of cover you are eligible for is to get a quote. Existing customers may want to consult their policy documents.