For most UK businesses, Employers’ Liability Insurance is a legal requirement. Any business that employs anyone other than immediate relatives of the owner, needs to have this cover in place.
You must also display a valid certificate for this cover at any premises that your employees work from, and have at least £5m cover in place. In practice though, the market standard is for £10m cover to be provided. Public sector organisations or businesses that employ only the owner and their immediate family are exempt from this requirement.
What does Employers’ Liability Insurance cover?
What is excluded?
Employers’ Liability does not cover injury or loss to customers or other stakeholders, as this would typically be covered by Public Liabiility Insurance or Product Liability Insurance. It also wouldn’t cover any Employment Tribunal or Constructive Dismissal claims, as these would be covered by Employment Practices Liability Insurance.