Employers Liability



Employers’ liability (EL) insurance is compulsory for all employers under the Employers’ Liability (Compulsory Insurance) Act. All firms that employ staff are legally required to hold employers’ liability insurance.

All employers must get employers’ liability insurance as soon as they become an employer. The policy must cover them for at least £5 million and come from an authorised insurer. Employers can check to see if their insurer is authorised by looking at the Financial Conduct Authority register or by contacting the Financial Conduct Authority.

EL insurance will help pay compensation if an employee is injured or becomes ill because of the work they do for the employer.

Employers may not need EL insurance if they only employ a family member or someone who is based abroad.

Employers can be fined £2,500 every day they are not properly insured. Employers can also be fined £1,000 if they do not display their EL certificate or refuse to make it available to inspectors when they ask.