Do I Need Employers' Liability Insurance? Free Checker

Do I need employers' liability insurance?

Under the Employers' Liability (Compulsory Insurance) Act 1969, almost every UK employer must hold employers' liability insurance of at least £5 million from the day their first employee starts work. Most UK policies are issued at £10 million as standard. The Health and Safety Executive can fine a business up to £2,500 for each day it trades uninsured, and a further £1,000 for failing to produce the certificate.

Who counts as an employee

• Full-time, part-time, seasonal and casual staff
• Apprentices and students on placement
• Labour-only subcontractors, where you supply materials and direct the work
• Volunteers working for a charity, community group or sports club

The main exemption

A limited company is exempt where the only employee is a director who owns 50 per cent or more of the issued share capital. That exemption ends the moment any other worker joins, including a part-time administrator or a family member on the payroll.

Certificates should be retained permanently — industrial-disease claims can be brought decades after exposure. See our employers' liability insurance page or call 020 8908 2426.