Employers Liability Insurance. Legally Required.
Employers liability is a legal requirement for almost every UK business with staff. It is not optional. We help you find compliant, affordable cover quickly.
Get in touchWhat is employers liability insurance?
Employers liability insurance covers you if one of your employees is injured at work and brings a claim against you. It pays compensation, medical costs and legal fees — up to your policy limit — if an employee suffers injury or disease as a result of your negligence.
It is a legal requirement in the UK for most businesses with staff. The minimum cover required is £5m, which must be displayed on your premises or available electronically.
Penalties for non-compliance are severe: the HSE can fine you up to £2,500 for each day you are uninsured, plus further fines for failing to display your certificate.
What is covered
- Employee injury claims
- Occupational disease claims
- Legal defence and representation
- Compensation awards
What is not covered
- Third-party injury caused by employees
Covered by public liability insurance instead
- Damage to your own property
Covered by buildings or contents insurance instead
Who needs employers liability insurance?
Businesses with employees
Any business that pays employees wages is legally required to have employers liability cover
Construction and trades
High-risk sectors with employees on site face significant exposure to injury claims
Hospitality and retail
Businesses with shift workers and customer-facing staff need cover
Care, health and social work
Roles with direct care or support responsibilities carry higher claim risk
How much does employers liability insurance cost?
£150 – £600 per year for small businesses; higher-risk industries such as construction or care pay £400 – £2,000+ depending on headcount and payroll
Industry and activity type
high impactConstruction, demolition, care work and other high-risk sectors attract significantly higher premiums than professional services or retail. Insurers price based on your likelihood of a claim.
Number of employees and total payroll
high impactThe more staff you have, the more exposure the insurer takes on. Premiums are often calculated as a rate per £100 of wages.
Claims history
medium impactA clean claims record can reduce your premium substantially. A history of workplace accidents will increase it and may affect which insurers will quote.
Use of labour-only subcontractors
medium impactHMRC may treat some subcontractors as employees for insurance purposes, increasing your declared headcount and premium.
WHY CECIL
Built differently.
Stay compliant
Non-compliance costs money in HSE fines — sometimes tens of thousands. We ensure you have cover that meets the legal minimum and protects your business appropriately.
Specialist cover for your sector
Construction, care, hospitality and manufacturing all carry different risk profiles. Your quote reflects your actual sector risk, not a generic calculation.
Transparent about cost drivers
We explain exactly how your premium is calculated: headcount, payroll, claims history and industry. No hidden extras.
Quick quotes, no bureaucracy
Answer a few questions about your business and staff, and we connect you with brokers who can quote within hours, not weeks.
Real claims: what employers liability insurance covers
A warehouse operative develops a repetitive strain injury from manual handling tasks
The policy covered compensation and rehabilitation costs after the employee brought a claim
£34,000 total — £27,000 compensation and £7,000 legal fees
A construction worker falls from scaffolding and sustains a broken leg
The policy covered the employee's compensation, medical costs and legal defence fees
£58,000 total settlement
A kitchen porter develops dermatitis from prolonged contact with cleaning chemicals
The policy covered the occupational disease claim after the employee could no longer work in the role
£19,000 total claim
Common questions about employers liability insurance
Is employers liability insurance a legal requirement?
Yes. The Employers' Liability (Compulsory Insurance) Act 1969 requires any business with employees to hold a minimum of £5m employers liability insurance. Failing to hold cover is a criminal offence and the HSE can prosecute and fine business owners and directors.
What does employers liability insurance cover?
Employers liability insurance covers the cost of compensation, medical expenses and legal fees if an employee suffers injury or disease at work as a result of your negligence. It covers physical injuries, occupational diseases, and psychological injury if work-related.
How much do I have to pay in penalties if I do not have employers liability insurance?
The HSE can issue a Prohibition Notice, which makes it illegal to employ anyone until you have cover in place. They can also fine you up to £2,500 per day of non-compliance, and further fines of £1,000 for failing to display your certificate or make it available to employees.
Does employers liability insurance cover public liability?
No. Employers liability covers injuries to your own employees. Public liability covers injuries to members of the public. These are two separate types of insurance and most businesses need both.
What is the minimum level of employers liability insurance required by law?
The minimum required by the Employers' Liability (Compulsory Insurance) Act 1969 is £5m. Most policies are issued at £10m as standard.
What is the fine for not having employers liability insurance?
The Health and Safety Executive can fine you up to £2,500 for each day you are not properly insured. Failing to display or make available your certificate of insurance can result in a further fine of £1,000.
Do I need employers liability insurance for self-employed workers?
It depends. If HMRC classifies your self-employed workers as employees for tax purposes, they may be treated as employees for insurance purposes too. Check with your insurer if you use contractors regularly.
Does employers liability insurance cover mental health claims?
Yes. Work-related stress, anxiety and other mental health conditions caused by the working environment can give rise to employers liability claims. Cover applies in the same way as for physical injuries.
Where do I need to display my EL certificate?
You must display it prominently where employees can easily read it, or make it available electronically. You are not required to send it to employees unless they ask.
Does employers liability insurance cover remote workers?
Yes. Employees working from home are covered under your employers liability policy. If a remote worker is injured in an accident linked to their work, the employer remains liable.
Industries that need this cover
Employers Liability Insurance is commonly required across these sectors.
Interested in Employers Liability Insurance?
We will be in contact when Cecil launches.