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EMPLOYERS’ LIABILITY INSURANCE THAT PROTECTS YOUR WORKFORCE & YOUR BUSINESS
Why Employers’ Liability Matters in Engineering & Manufacturing
Engineering and manufacturing sites are dynamic workplaces where people regularly operate machinery, handle materials, work with tools, and move goods around busy production environments. Even with strong health and safety standards, accidents and occupational illness can happen — and when they do, the financial and legal consequences can be significant.
Employers’ Liability (EL) insurance is designed to protect your business if an employee (or, in many cases, a labour-only sub-contractor) suffers injury or illness as a result of work and brings a claim for compensation. It typically covers compensation awards and associated legal defence costs, subject to policy terms, limits and exclusions.
Insure24 helps engineering and manufacturing employers across the UK arrange employers’ liability cover that meets legal requirements, supports contract needs, and integrates sensibly with the rest of your manufacturing insurance programme.
What Employers’ Liability Insurance Covers
Employers’ liability insurance is built to respond when your business is held legally liable for injury or illness suffered by an employee due to their work. Manufacturing claims can involve slips and trips, manual handling injuries, machine-related incidents, exposure to hazardous substances, repetitive strain injuries, and longer-tail occupational disease allegations.
While cover varies by insurer and wording, employers’ liability commonly includes:
- Compensation for injured employees – damages awarded or agreed settlements (subject to policy terms).
- Legal defence costs – solicitors’ fees and costs of defending allegations (subject to insurer panel/consent requirements).
- Claim investigation – support in establishing facts, documentation, and liability position.
- Court attendance & representation – where the insurer appoints legal representation.
- Health & safety support – many insurers provide guidance, templates or consultancy support (varies by insurer).
- Worldwide cover for temporary work – may be available depending on employer location and policy (terms apply).
Is Employers’ Liability Insurance a Legal Requirement?
In the UK, employers’ liability insurance is legally required for most businesses that employ staff. If you have employees — whether on permanent contracts, part-time arrangements, apprenticeships, or casual labour — you should assume EL is required unless you have a clear exemption. There are limited exemptions (for example, some family-only employment arrangements), but many engineering and manufacturing firms will need EL due to the nature of their workforce and operational environment.
In addition to legal requirements, employers’ liability is commonly demanded by:
- Landlords and property owners (where you rent industrial units)
- OEMs and principal contractors (as part of supplier onboarding)
- Framework agreements and tender documents
- Accreditation schemes and audits (where insurance evidence is required)
Insure24 can help you evidence the correct cover quickly — including producing documentation suitable for onboarding portals and contract compliance checks.
Who counts as an “employee” for EL purposes?
“Employee” can extend beyond your PAYE workforce. In manufacturing, insurers often look at:
- Direct employees (full-time, part-time, temporary)
- Apprentices, trainees and work experience placements
- Agency staff working under your direction/supervision
- Labour-only sub-contractors (where you control work methods)
- Seasonal labour and short-term hires
If you’re unsure how your staffing model is treated, we’ll help you structure the policy correctly.
What limit do I need?
Many UK EL policies are provided with a standard limit that meets common legal expectations and contract requirements. However, contract terms can specify minimum limits and sometimes require “any one occurrence” wording or specific clauses.
- Review customer contract requirements (OEM/principal contractor)
- Consider headcount, site complexity and manual handling exposure
- Include apprentices/young workers (higher supervision requirements)
- Factor in higher-hazard tasks (welding, fabrication, heavy lifting, forklifts)
We’ll recommend a limit that fits your risk and your contracts.
Common Employers’ Liability Claims in Engineering & Manufacturing
Employers’ liability claims in engineering/manufacturing often stem from workplace incidents, but they can also arise from longer-term exposure and occupational illness allegations. Good health and safety systems reduce risk, but claims may still occur even when you believe you’ve done everything right — which is why the policy’s legal defence component matters.
Injury Claims
- Slips, trips and falls – spillages, trailing cables, uneven flooring, loading areas and walkways.
- Manual handling injuries – lifting heavy parts, repetitive loading/unloading, awkward assemblies, poor ergonomics.
- Machinery-related incidents – entanglement, crush injuries, poor guarding, incorrect lock-off procedures.
- Tool and hand injuries – cuts, punctures, impact injuries, grinder incidents, welding burns.
- Forklift / vehicle accidents – collisions in yards/warehouses, reversing incidents, pedestrian interactions.
- Work at height – ladders, mezzanines, maintenance platforms and racking areas.
Occupational Illness & Longer-Tail Claims
- Noise-induced hearing loss – prolonged exposure to loud machinery without adequate controls.
- Respiratory conditions – dust, fumes, welding smoke, mist, chemical exposure (subject to controls and allegations).
- Dermatitis – oils, coolants, solvents and cleaning agents (PPE and skin care controls critical).
- Repetitive strain injury – repetitive assembly, inspection work, poor workstation ergonomics.
- Vibration-related injury – handheld tools, grinding and finishing operations.
These claims can arise years after exposure, so good record-keeping (training, PPE issue, risk assessments, health surveillance) is vital.
What Affects the Cost of Employers’ Liability Insurance?
Employers’ liability pricing reflects your payroll, employee activities, risk controls and claims history. Engineering and manufacturing are rated based on the nature of work (e.g., light assembly vs heavy fabrication), the type of machinery in use, and the level of exposure to manual handling, noise, dust and other workplace hazards.
Insurers commonly consider:
- Payroll / wage roll – by employee category (shop floor vs office, skilled trades, drivers, etc.).
- Work activities – machining, welding, fabrication, assembly, maintenance, installation and site work.
- Premises and layout – housekeeping, pedestrian segregation, traffic routes, loading areas.
- Health & safety management – risk assessments, SOPs, near-miss reporting, toolbox talks.
- Training and competence – induction, refreshers, forklift training, machine operator competence.
- PPE and enforcement – issuance records, monitoring, correct use, maintenance/replacement.
- Claims history – frequency/severity, what changed afterwards, ongoing controls.
- Use of contractors – labour-only vs bona fide subcontractors and supervision arrangements.
Practical Ways to Improve Terms
Manufacturers that can evidence strong controls often secure better outcomes over time. Consider:
- Documented risk assessments and method statements (RAMS) for core tasks
- Machine guarding checks and lock-off/tag-out procedures
- Manual handling training and mechanical aids where reasonable
- Noise/dust monitoring and appropriate health surveillance
- Clear accident reporting and investigation processes
- Good housekeeping, marked walkways and segregated traffic routes
We’ll help present your risk positively to insurers — without unnecessary paperwork.
Why Choose Insure24 for Employers’ Liability?
Employers’ liability is a foundation cover — but the details matter. Manufacturing businesses can have complex staff structures, varied processes, and contract-driven insurance requirements. Insure24 helps you place EL as part of a coherent, manufacturing-focused insurance programme that fits your operations.
- Specialist understanding of engineering & manufacturing workplace risks
- Clear guidance on staffing categories, labour-only subcontractors and contract obligations
- Access to leading UK insurer markets
- Support aligning EL with public/product liability and wider manufacturing cover
- Fast turnaround and straightforward documentation
- Claims-aware guidance: what to do and what to record if an incident occurs
How to Get Employers’ Liability Insurance
Getting the right employers’ liability cover is usually quick when the key details are clear. For engineering/manufacturing, we focus on accurate descriptions of work, clear payroll splits, and practical risk controls — so insurers can quote efficiently and fairly.
- 1. Tell us your business activities and location(s)
- 2. Confirm total payroll and role split (shop floor vs office / drivers etc.)
- 3. We review contract requirements (if any) and recommend limits
- 4. We compare leading insurers and present options
- 5. You choose cover and we put it on risk — documentation issued
Insure24 helped us sort employers’ liability quickly and properly — including the right payroll splits and evidence for our customer onboarding. Clear advice and fast documentation.
Production Manager, UK Engineering FirmFREQUENTLY ASKED QUESTIONS
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What is employers’ liability insurance?
Employers’ liability insurance protects your business if an employee is injured or becomes ill as a result of work and makes a claim for compensation. It typically covers compensation awards/settlements and legal defence costs, subject to policy terms and conditions.
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Is employers’ liability insurance legally required in the UK?
In the UK, employers’ liability is legally required for most businesses that employ staff. There are limited exemptions, but many engineering and manufacturing firms will need EL due to employing workers, apprentices, temporary staff or labour-only contractors under their control.
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Does EL cover contractors or agency workers?
It can, depending on how the worker is engaged and supervised. Labour-only subcontractors and some agency workers may be treated similarly to employees where you direct and control the work. We’ll help you structure cover appropriately based on your staffing model and contracts.
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What kind of claims are common in manufacturing?
Common EL claims include slips/trips, manual handling injuries, machine-related incidents, forklift accidents, cuts/burns, and occupational illness allegations such as hearing loss, dermatitis, respiratory conditions, repetitive strain injury, or vibration-related injury.
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What information do I need to get a quote?
Typically: your business activities, headcount, payroll split by employee type (shop floor vs office etc.), premises details, key processes (machining/welding/assembly), use of forklifts/vehicles, and claims history. If you have customer contract requirements, it helps to share those too.
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What limit should I choose?
Many EL policies are arranged with standard limits that satisfy typical legal and commercial requirements, but some OEMs or principal contractors may specify a minimum limit. We’ll review your contracts and risk profile and recommend a suitable limit and wording structure.
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Does EL cover injuries caused by faulty PPE or training issues?
EL is designed to respond when you’re alleged to be legally liable, which can include allegations around inadequate training, supervision, PPE provision, or workplace controls. The insurer typically handles defence and settlement subject to policy terms and the facts of the claim.
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Can I get employers’ liability as part of a combined manufacturing policy?
Yes. Many manufacturers buy EL alongside public/product liability, property, machinery breakdown and business interruption as part of a combined or packaged policy. We’ll help you choose a structure that matches your needs and contracts.
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How quickly can Insure24 arrange cover?
Many employers’ liability requests can be quoted and arranged quickly once we have your core details and payroll split. More complex risks (multiple sites, higher-hazard processes, or specific contract clauses) may require additional underwriting review — but we aim to move promptly.