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Short answer: most UK employers must hold employers’ liability (EL) insurance, but the law has limited exceptions. Whether an exception applies depends on the organisation, its ownership and who works for it, so check the official guidance and your circumstances before relying on one.
EL insurance is intended to meet an employer’s legal liability for injury or illness suffered by an employee in the course of work. It is separate from public liability, which concerns injury or damage involving members of the public. A business may need both, and the policy wording and schedule set the insured activities, limits, exclusions and conditions.
Who is generally required to arrange it?
UK Government guidance says employers must usually insure against liability for injury or disease suffered by employees because of their work. The minimum required cover is generally £5 million, and the policy must be with an authorised insurer. Check the current rules directly because exemptions and requirements depend on the employer’s legal form and circumstances: GOV.UK employers’ liability insurance.
Are there exceptions?
Some organisations may be exempt, including certain businesses employing only close family members, and some companies where the owner is the sole employee and also owns at least half the shares. The exact conditions matter; a limited company is a separate legal entity, and assumptions based only on job title or family relationship can be unsafe. Use the government’s exemption list and, where unsure, obtain appropriate legal or insurance advice.
Do contractors count as employees?
The label in a contract is not the only factor. The real working relationship and the policy’s definition of employee can affect the analysis. Review arrangements for temporary, casual, agency and subcontracted workers, including who controls the work and who is responsible for insurance. Ask your broker and legal adviser to clarify uncertain arrangements.
What should a business check?
- Confirm the legal employer and the people covered by the policy definition.
- Check the insured activities, locations, limit, exclusions and any conditions.
- Keep the certificate of insurance accessible and display it electronically or physically as permitted by current rules.
- Review cover when you hire, restructure, use contractors or change activities.
Insure24 is a broker, not an insurer. Its business insurance information can help you explore relevant cover, and you can contact the team with an enquiry. Availability and terms depend on the insurer, risk details and policy wording.
This is general information, not a personal recommendation. Check current official requirements and the wording that applies to your business.
Common questions
Does this article replace insurance advice?
No. It is general guidance only. The right policy still depends on the business activity, contracts, locations, turnover, staff, assets, claims history and insurer wording.
What information should I prepare before asking for quotes?
Prepare turnover, wage roll, activities, locations, contract requirements, claims history, asset values, existing policy details and any deadlines for evidence of cover.
Where should I go next?
Use the main Business Insurance page if you are ready to compare quote-led cover options or talk through the risk with Insure24.