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Employers' Liability Insurance

Compare employers' liability insurance with SimplyBusiness

  • Compare cover from 14 insurers
  • Find a great deal in minutes
  • Comparing public liability policies is free, fast and simple!

What is employers' liability insurance?

Employers' liability insurance covers you and your business for compensation costs if an employee becomes ill or injured as a result of the work they do for you. It's legally required of all businesses with one or more employees.

Employers' liability insurance is a legal requirement if you have employees – including many types of subcontractor. If you are caught without cover, your business can be fined up to £2,500 per employee per day.

There are a couple of important exceptions to the law. For instance, if you're running an unincorporated family business, you aren't legally required to take out employers' liability cover. It is also unnecessary for sole traders.

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What does employers' liability insurance cover?

Employers' liability insurance covers the costs that arise from claims made by your employees if they've been injured or fallen ill as a result of working for you. In practice, this means the following:

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    Legal Costs

    Covers the costs of settling or defending claims made by employees

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    Medical bills

    Covers the costs of medical treatment for sick or injured employees

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    If you end up losing a claim in court, compensation will also be covered

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    Lost income

    This type of policy will also cover income employees lose while they’re laid up

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    Casual Workers

    Most casual workers are covered – but check the exact terms of your policy

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    £10m cover

    Your policy will provide cover for claims of up to £10m'

Who is exempt from employers' liability insurance?

Employers’ liability insurance is a legal requirement for almost every business, but there are exceptions:


Certain limited companies

A limited company with one employee who also owns more than 50% of the shares is exempt

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Sole Traders

If you work on your own and do not employ anyone else for any work, you do not need this cover

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Family Members

Companies where all employees are direct family members are free from employers’ liability cover

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Public Bodies

Many public organisations, health services and government bodies are insured in a different way

How much employers’ liability cover do I need?

If you have employees, you're legally required to have cover worth at least £5 million. However, most insurers will offer £10 million as standard.

Does employers’ liability insurance cover staff working from home?

Your cover must extend to wherever your employees are working, including at home. Most policies automatically include home-working cover, but it’s important to check the wording of your policy.

How much does employers’ liability insurance cost?

The cost of premiums can vary considerably, depending on the type of business you run and how many employees you have. Simply Business will show you a range of prices and options from top UK insurers – letting you decide the level of cover that's right for your business.

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Compare business insurance quotes from major UK insurers such as:

We compare many of the leading business insurance brands including:

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How to get an employers' liability quote

MoneySuperMarket has teamed up with SimplyBusiness, a specialist business insurance provider, to bring you great deals to suit almost any kind of operation. Getting a quote couldn't be easier:

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Give us your details

Tell us a bit about your business, including what it does and how many employees it has

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We search the market

SimplyBusiness will compare all the relevant deals its big-name insurance partners have on offer

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Choose the one you like

We’ll show you a range of offers, and you can choose the one you think best suits your needs

As with any form of insurance, it’s important to compare a variety of public liability insurance policies from different providers before buying. Check the levels of protection on offer as well as the annual premiums, and consider carefully where you should set your excess.

MoneySuperMarket’s public liability insurance comparison channel will help you gather a selection of quotes within minutes, to help you find the best deal for you.

Aside from public liability insurance, you can also find other types of cover for your business:

  • Employers’ liability: Employers’ liability cover is to protect you against legal costs if an employee is injured, gets ill, or their property gets damaged as a result of your business. It’s legally required if your business employs others
  • Product liability: Product liability insurance covers you for any costs resulting from a person becoming ill or injured or having their property damaged by a product your business sells – often even if you didn’t manufacture it
  • Professional indemnity: A professional indemnity policy is useful protection if you give advice to clients as part of your business. It covers the cost of claims made against you if the client suffers any losses as a result of the advice or work you did
  • Business interruption: With business interruption insurance you’ll be covered for at least part of any lost income as a result of an insured event, such as a fire or flood
  • Business property: Also known as business buildings insurance, this is useful if you conduct your business from one or more premises. You’ll be covered for damage done to the building as a result of an insured event
  • Business motor: If your business uses vehicles then you’ll be legally required to take out business motor insurance to at least a third party only level of cover. This protects you against the cost of damage you cause to another person, their vehicle or their property as a result of your driving
  • Cyber: Cyber insurance is a crucial part of modern day business, as it can cover a wide variety of costs associated with falling victim to a cyber attack

Depending on the size and nature of your business you could benefit from some or all of the above – just tell us what you need and we’ll find you the best business insurance quotes available.

Business interruption insurance after the coronavirus outbreak

Any new business interruption policies sold won’t cover claims resulting from events that are already taking place – so business interruption claims related to COVID-19 are unlikely to be successful.

  • Accidents that happen to you.
  • Damage to your own property or accidents that affect your employees or their possessions.
  • Incidents like these should be covered under your general business insurance policy and / or your employers’ liability insurance policy, which is a legal requirement.

First and foremost, it’s important to note that the complete cost of any claim you need to make under public liability cover is unlikely to be met by your insurer. You are likely to have to pay an excess at a level agreed when you first set up your policy - for example, the first £250 or £500 of any claim.

As a general rule of thumb, if you opt for a higher excess the price of your public liability insurance premium may come down - but it’s important to be sure you could genuinely afford to pay the excess in the event of a crisis.

We’ve teamed up with Simply Business to help you compare a range of quotes from leading insurers. It’s quick and easy to complete a quote and you can buy a policy online in minutes.

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But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.