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EMPLOYERS’ LIABILITY COVER BUILT FOR ENGINEERING WORKPLACES
Precision engineering and manufacturing environments bring higher-severity injury exposures — rotating machinery, presses, forklifts, lifting equipment, cutting tools, noise, vibration, fumes and repetitive tasks. Employers’ Liability Insurance helps protect your business when an employee alleges the company was legally responsible for injury or illness arising from work.
What is Employers’ Liability Insurance?
Employers’ Liability (EL) Insurance covers your legal liability if an employee is injured or becomes ill due to their work and makes a claim for compensation. It typically covers the costs of defending the claim as well as any damages awarded or agreed in settlement, subject to the terms, conditions and limits of your policy.
For engineering and manufacturing businesses, EL is one of the most critical covers you will buy — because workplace incidents can be severe, and claims may involve long-term injury, rehabilitation costs, loss of earnings, and significant legal spend. In addition, a serious incident may trigger regulatory attention and increased scrutiny at renewal, making it essential that your insurance and risk controls are aligned.
Is Employers’ Liability Insurance Compulsory?
In most cases, yes — if you employ staff in the UK you will usually be required to hold Employers’ Liability Insurance. Engineering firms often use a mix of employees, apprentices, temporary labour and subcontractors, and it’s important that your policy correctly reflects how labour is engaged and who is considered an “employee” under the policy definition.
Even where a business believes it might fall into an exemption, it’s usually wise to take advice. A gap in Employers’ Liability can be financially devastating if an injury claim arises. Insure24 helps you structure cover around your real labour model and contract obligations, so you’re not relying on assumptions.
Common engineering labour scenarios
- Employees – shop floor, machinists, setters, inspectors, supervisors.
- Office staff – CAD/CAM, purchasing, admin, sales, accounts.
- Apprentices – training needs and supervision are key underwriting factors.
- Temporary staff – agency workers, peak-period labour, short-term operators.
- Labour-only subcontractors – can be treated as employees in practice.
- Bona fide subcontractors – may need their own insurance but still create site risk.
Why correct disclosure matters
Underwriters assess engineering workplaces differently based on processes and hazards. If your description is too broad (e.g., “general engineering”) but you operate presses, EDM machines, robotics, powder coating, hot works or heavy lifting, the insurer needs that detail. Accurate disclosure improves claim certainty and avoids last-minute surprises at renewal.
We’ll help you present your processes clearly — machining, fabrication, tooling, assembly, testing, finishing, packaging and any on-site installation work — so your Employers’ Liability is correctly rated and aligned.
What Employers’ Liability Insurance Covers in Practice
Employers’ Liability is designed to respond when an employee alleges the employer was negligent or legally responsible for an injury or illness caused by work. In manufacturing, claims may arise from sudden accidents or long-term exposure.
A well-structured policy provides strong claims handling support: insurer-appointed solicitors, specialist adjusters where needed, and the funds to defend the business. The specifics depend on your insurer and policy wording, but these are the typical protections:
Typical EL policy protections
- Legal defence costs – solicitors, counsel, experts and court costs (within policy terms).
- Compensation / damages – awards or settlements where you are legally liable.
- Employee injury incidents – slips, trips, falls, handling injuries, machinery incidents.
- Occupational illness – e.g., hearing loss, dermatitis, HAVS, respiratory issues (fact dependent).
- Claims from temps/apprentices – where they fall within the policy “employee” definition.
- Worldwide cover for temporary work – sometimes available where staff travel for work (policy dependent).
What EL is not designed to cover
- Damage to your own property – that’s property insurance (buildings, contents, machinery).
- Injury to visitors – public liability is for customers/contractors/visitors.
- Pure financial loss from design errors – often a Professional Indemnity issue.
- Routine HR disputes – may sit under legal expenses (optional, wording dependent).
- Downtime from incidents – business interruption helps when production halts after insured damage.
Many engineering firms bundle EL within a combined manufacturing package, so liabilities, premises risk and business interruption work together. Insure24 can arrange EL standalone or as part of a wider package depending on your needs.
Common Employers’ Liability Claim Scenarios in Precision Engineering
Engineering workplaces combine machinery, materials and movement — meaning claims can be severe and complex. The scenario examples below are not exhaustive, but they reflect the real types of claims that often arise in machining, toolmaking, fabrication and assembly.
Machinery injury: entanglement, crushing or cutting
A machinist is injured by moving parts: a sleeve/glove catches, a hand is trapped, or a blade/cutter causes injury. Claims often focus on guarding, interlocks, emergency stops, lock-off procedures, training and supervision.
- EL can fund defence and damages where the employer is liable
- Training records, SOPs and maintenance logs become critical evidence
- After serious incidents, HSE scrutiny may increase
Manual handling & musculoskeletal injury
Tooling, vices, heavy components, stock bars and finished parts are frequently moved. Claims can involve back injuries, strains, and repetitive stress where task rotation, lifting aids, training or supervision are alleged to be inadequate.
- EL responds where the injury is alleged to arise from work
- Risk assessments and manual handling controls help defend claims
- Investing in lifting aids can reduce frequency and premium pressure
Forklift and yard incidents
A forklift strikes an employee, racking, or a pallet load. Claims often centre on pedestrian segregation, speed controls, training, visibility and traffic management plans.
- EL covers employee injury claims
- If a visitor is injured, Public Liability may be the responding policy
- Clear site rules and marked walkways strengthen risk presentation
Occupational illness: noise, vibration, fumes, dermatitis
Engineering operations can involve noise exposure, vibration tools, coolants/oils, welding fumes, solvents, and dust. Illness claims can develop over time and may involve historic evidence, PPE policies, exposure monitoring and COSHH controls.
- EL can respond to illness allegations within policy terms
- Good documentation helps: PPE issuance, monitoring, training, assessments
- Insurers may ask about control measures at quotation/renewal
The practical point
Many claims are defendable when risk controls are documented and enforced — but they become harder when training records are missing, guarding has been bypassed, procedures are informal, or maintenance isn’t recorded. Insure24 helps you structure cover and present your controls clearly to insurers.
What Insurers Need to Quote Employers’ Liability for Engineering Firms
Employers’ Liability is typically priced from your wage roll and risk profile. The more clearly you describe your operation, the more accurate (and often more competitive) the terms can be. Below is what insurers commonly ask for.
Core information
- Total wage roll and split by staff type (shop floor vs office)
- Business activities – machining, fabrication, toolmaking, assembly, finishing
- Processes and hazards – presses, welding, hot works, solvents, vibration tools
- Claims history – last 3–5 years and actions taken after incidents
- Use of temps and subcontractors – and how they are supervised
- Premises overview – layout, housekeeping, traffic management
Risk controls that can improve terms
- Training logs and competency sign-off
- Machine guarding and lock-off/tag-out procedures
- Maintenance records and inspection schedules
- Manual handling controls and lifting aids
- Forklift/pedestrian segregation and site rules
- PPE policies and exposure monitoring where relevant
- Near-miss reporting and corrective actions
If you already operate ISO-style controls (e.g., documented procedures, audits, corrective actions), tell us — it can help strengthen your risk presentation.
Choosing the Right Employers’ Liability Limit
Many policies are arranged with a standard limit (often £10m), but the right limit depends on your contracts, workforce profile, and the severity potential of your operations. Some customers specify minimum limits as a condition of onboarding.
The correct approach is to align your EL limit with: contract requirements, the scale of your workforce, and the hazard profile (e.g., heavy machining, press work, lifting operations). Insure24 will help you avoid the two extremes: buying insufficient cover to win contracts, or over-buying without any practical benefit.
Typical contract asks
- Employers’ Liability: £5m or £10m
- Public & Products Liability: £2m / £5m / £10m
- Evidence of cover: certificate and schedule
- Endorsements: principals indemnity (where relevant)
Good practice for procurement
- Share contract clauses early so wording can be matched
- Keep certificates and schedules in a simple compliance pack
- Ensure business description matches actual operations
- Confirm labour model (temps/subcontractors) in underwriting
“We needed EL in place quickly to satisfy a customer audit. Insure24 helped us present our processes properly and keep the cover aligned with our real workshop risks.”
Operations Manager, UK Precision Engineering FirmFREQUENTLY ASKED QUESTIONS
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Is Employers’ Liability insurance compulsory for engineering businesses?
In most cases, UK businesses with employees are required to hold Employers’ Liability insurance. Some exemptions may apply depending on ownership and staffing structure, but most engineering and manufacturing employers need EL in place.
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What does Employers’ Liability insurance cover?
Employers’ Liability covers your legal liability if an employee suffers injury or illness arising from their work and makes a compensation claim. It typically includes legal defence costs and damages/settlements, subject to policy terms.
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Does it cover injuries involving machinery?
EL is designed to cover workplace injury claims, which can include incidents involving machinery, tools and equipment, subject to correct disclosure of your operations and the policy’s terms and conditions.
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Are apprentices and temporary staff covered?
Cover can usually extend to apprentices and temporary staff if they fall within the policy’s definition of employees and are correctly declared in underwriting (including wage roll information and labour arrangements).
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What level of Employers’ Liability cover do I need?
Many policies are arranged at £10m, but the right limit depends on legal requirements, workforce size and contract obligations. Some customers specify minimum limits as a condition of onboarding.
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Does Employers’ Liability cover HSE investigations?
Employers’ Liability primarily deals with civil claims from employees. Support for regulatory investigations depends on the policy and any optional covers you select (such as legal expenses or management liability). We can explain what’s available for your business.
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What information is needed for a fast quote?
Typically: wage roll split (shop floor vs office), description of processes and machinery, claims history, use of temps/subcontractors, and key safety controls (training records, guarding, maintenance and traffic management).
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Can Insure24 arrange Employers’ Liability as part of a full package?
Yes. Many precision engineering businesses arrange EL as part of a combined package including public/products liability, property, machinery breakdown and business interruption. We’ll structure the package around your operations and contract requirements.