Employer's liability insurance

Employers' liability insurance is a type of insurance policy that provides coverage to UK employers against legal liabilities and costs that arise if their employees become ill or injured due to their work.

Businesses are required to have employers' liability insurance if they have one or more employees. This insurance policy protects employers from potential financial losses if an employee is injured or becomes ill as a result of their work activities, and makes a claim against the employer.

If you have one or more employees then employers liability insurance is compulsory by law and you can be fined if you do not have it.

However, there are some exceptions to the rule – if you only employ a family member or someone who is based abroad then you may not need it.It's best to check the rules, however, as you don't want to be fined for non-compliance.