What is employers’ liability insurance?

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.

Employers’ liability insurance can pay the compensation amount and legal costs if an employee, or an ex-employee, claims compensation for a work-related illness or injury.

What does employers’ liability cover?

As standard with AXA Employers’ Liability, you’ll get:

  • £10 million 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
  • Access to a 24-hour legal helpline.

Who does employers’ liability insurance cover?

For those employees or people who you’re responsible for, you cover:

  • Full-time and part-time employees
  • Self-employed contractors you hire
  • Temporary staff, apprentices and volunteers
  • People taking part in work experience or training schemes.

How much does employers’ liability insurance cost?

Just as no two businesses are identical, there’s no set price for employers’ liability insurance. You’ll need to consider how many employees you have, what type of business you carry out and how you pay your staff their wages when you’re getting insurance.

The quickest way to find out your business needs? Get a quote online – it’ll only take ten minutes, and you’ll get a 10% discount for buying online.

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) employers’ liability insurance can cover compensation costs and legal fees. In most cases, it’s a legal requirement.

If you don’t have employers’ liability insurance, it could cost you dearly and not just from a compensation claim. If you employ even one member of staff on any basis, including volunteers, you face being fined £2500 for every day you are uninsured.

Is employers’ liability insurance compulsory?

Yes – if you have staff. It’s a legal requirement for almost all businesses that have employees. (Immediate family are exempt from this requirement, though it means that if something happens, you’ll need to pay out if you lose a claim.)

But who counts as an employee? Did you know that because volunteers are technically working under your instruction, they’re considered your responsibility in the eyes of the law? That means you’re legally obliged to have insurance that protects them.

If you don’t, you could face fines of £2,500 for each day you aren’t properly insured.

More specific queries? Get in touch with our expert support team. They can answer any questions you have on cover level, guide you to the insurance you might need and advise on suitable cover levels.


What's covered?

Need some more guidance on what you’ll get with employer’s liability insurance? Take a look at this at-a-glance guide.

Employers' liability

Discover how Employers’ Liability Insurance protects you, your people and business.