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What is employers’ liability insurance?

Employers’ liability insurance protects businesses against legal claims from their own employees. If an employee sustains an injury within your business premises or while carrying out their business duties, your business could be held liable.

Start-ups and SMEs could be potentially wiped out by legal claims from employees which is why employers’ liability insurance was made compulsory in 1969. As an essential cover, you need to ensure you receive a competitive price and comprehensive cover; this is where we can help you.

Explore the benefits of employers’ liability cover with Smart Sure:

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What does employers’ liability insurance cover?

Most employers’ liability insurance policies cover the following:

  • Legal costs and compensation for illness and injury claims from employees
  • Defending health and safety prosecutions

Why do I need employers’ liability insurance?

As an employer, you are responsible for the health, safety and wellbeing of your employees. In 1969, it became compulsory for employers to have an employers’ liability insurance policy in place if there are one or more employees at their company.

If you are a sole trader or only employ close family members then you are not legally required to have employers’ liability insurance however it is still recommended as it provides security for your business and for your employees.

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Frequently asked questions

Yes. Businesses that employ one person or more are required to have employers’ liability insurance under UK law.
Under UK law, the minimum limit of indemnity for employers’ liability insurance is £5m.
When you obtain employers’ liability insurance you will receive a certificate stating your cover level. This must be displayed so your employees can see it.
Any business can have public liability insurance however the law does not require all types of businesses to have it. Organisations such as public organisations, government bodies and family businesses who only employ family members are exempt from the requirement under UK law.
No. Under UK law you are not required to keep your certificate if it is out of date however you must clearly display your current one.
Failure to show your certificate to a visiting HES inspector could result in a £1,000 fine.
If you are a business that is legally required to have employers’ liability insurance but do not have a policy, you may be fined up to £2,500 for every uninsured day.
If your employees are based abroad then you are exempt under UK law. However, you must adhere to the law of the country that your employees are based in.