Guide
Employers' liability: what the law requires
Why almost every UK employer must hold at least £5 million of cover, and what happens if you don't.
Read guideCompare employers' liability insurance
Employers' liability insurance is a legal requirement for almost every UK business with staff. Compare cover that meets the £5 million minimum without overpaying.
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How employers' liability insurance works
Employers' liability insurance covers compensation claims from employees who are injured or become ill because of their work, whether that happened last week or twenty years ago.
Under the Employers' Liability (Compulsory Insurance) Act 1969, almost every UK business with staff must hold at least £5 million of cover, and failing to do so can mean fines of £2,500 for every day you're uninsured.
The policy pays compensation and legal costs, and because claims — particularly for industrial illness — can surface many years later, you're required to keep certificates going back decades.
What affects the cost of employers' liability insurance
- Number of employees, including part-time and casual staff
- Type of work carried out — office based versus manual or hazardous
- Payroll size
- Claims history
- Cover limit chosen above the £5m minimum
Why compare employers' liability insurance with us
Legally required
Almost every employer must hold at least £5m of cover by law.
Covers historic claims
Illnesses like industrial deafness can surface decades later — certificates must be kept.
Usually bundled cheaply
Adding it to a public liability policy is often only £60-£200 extra a year.
Typical premiums by staff numbers
Indicative annual premiums for £10m employers' liability cover, excluding IPT.
| Business size | Work type | Annual premium |
|---|---|---|
| 1-4 staff, office based | Low risk | £60 - £120 |
| 5-19 staff, office based | Low risk | £120 - £280 |
| 1-4 staff, trade/manual | Medium risk | £150 - £350 |
| 5-19 staff, trade/manual | Medium risk | £350 - £800 |
| 20-49 staff, construction | Higher risk | £900 - £2,200 |
Cover limit vs annual cost
Most insurers now offer £10m as standard rather than the legal £5m minimum, at little extra cost.
| Cover limit | Meets legal minimum? | Typical extra cost vs £5m |
|---|---|---|
| £5 million | Yes — the legal minimum | Baseline |
| £10 million | Yes, exceeds it | £0 - £30 per year |
| £15 million | Yes, exceeds it | £20 - £60 per year |
Expert advice
Our team reviews UK commercial insurers, policy wordings and typical premiums throughout the year.
“This is the one policy where 'I didn't know I needed it' isn't a defence. If you employ anyone, even part time, get this in place before their first shift.”
employers' liability insurance: pros and cons
Pros
- Keeps you on the right side of a legal requirement
- Protects against claims that can surface decades later
- Usually cheap to add to an existing policy
- Avoids fines of up to £2,500 per day without cover
Cons
- You must display or retain your certificate — losing it risks a separate fine
- Premiums rise noticeably for manual and construction trades
- A handful of very small businesses are exempt, which causes confusion
How to choose a employers' liability insurance policy
Cover limits and exclusions vary a lot between insurers. Check these points before you buy.
- 1
Confirm you're not exempt
Sole traders with no employees, and some family businesses, are exempt — but almost everyone with staff must hold cover.
- 2
Keep every certificate
You're required to retain certificates for 40 years because illness claims can surface long after employment ends.
- 3
Declare your work type accurately
Describing manual work as office based can invalidate a claim entirely.
- 4
Check historic liability cover
If you're buying a business, check the previous owner's employers' liability history transfers or is still traceable.
Compare employers' liability insurance
See what's available for your business today. It takes just minutes.
How to compare employers' liability insurance
It takes a couple of minutes and there is no obligation to buy.
1. Tell us about your business
Trade, turnover, headcount and the cover limits you need.
2. See matched insurers
We shortlist UK insurers and brokers who actually cover your trade.
3. Compare the full policy
Premium, excess, cover limits and exclusions — not just the headline price.
4. Buy your cover
Most policies can be arranged online with your certificate issued the same day.
Things to watch out for
This is a legal requirement — the Health and Safety Executive can fine you £2,500 for every day you trade without at least £5 million of cover.
You must display your certificate at each place of business, or make it available electronically to staff and inspectors on request.
Failing to keep old certificates can leave you unable to defend a historic industrial illness claim decades later.
Our employers' liability insurance service
We compare employers' liability insurance from established UK insurers and brokers so you can see premiums, limits and exclusions side by side.
Comparing is free, and we will say plainly when your existing policy already looks like good value.
Getting started
1
Check your renewal date
Start comparing four to six weeks before renewal so you don't auto-renew onto a higher price.
2
Gather your claims history
Insurers will ask about claims from the last three to five years.
3
Confirm your cover limits
Contracts and clients often set minimum limits you must hold.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad range of UK providers so you can find the option that actually fits how your business operates.
Exclusive offers
We work hard to bring you exclusive deals, switching incentives and cashback where they're available.
Simple and fast
It takes just a few minutes to compare with us — and the deal you find could be well below what you pay today.
Types of employers' liability insurance
The right policy depends on your trade, size and the contracts you work under.
Office-based cover
Lower-risk cover for desk-based businesses with minimal manual work.
Manual trade cover
For construction, manufacturing and other physical trades with higher injury risk.
Casual and temporary staff cover
Extends cover to zero-hours, seasonal or agency workers you directly supervise.
Group and umbrella cover
For businesses with multiple sites or subsidiaries under one policy.
Providers we compare
Logos are shown for identification. We are not affiliated with every insurer listed and do not compare the whole market.
Simply Business
AXA
Aviva
Hiscox
Zurich
Allianz
Superscript
Markel
Direct Line for BusinessComparing with us is a no-brainer
“We didn't realise our casual weekend staff counted until our accountant flagged it — sorting cover took minutes.”
Sam, retailer, Cardiff
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Read guideemployers' liability insurance FAQs
Is employers' liability insurance a legal requirement?
Yes. Almost every UK business with employees must hold at least £5 million of cover under the Employers' Liability (Compulsory Insurance) Act 1969.
What's the fine for not having it?
The Health and Safety Executive can fine you £2,500 for every day you're without adequate cover, in addition to any compensation claim.
Am I exempt if I'm a sole trader with no staff?
Yes, if you genuinely have no employees. Once you take on staff — even part time, casual or family members — you almost certainly need cover.
How long do I need to keep certificates?
At least 40 years, because illnesses linked to past work, such as industrial deafness, can be claimed for long after employment ends.
Written by the Grow Your Business editorial team · Updated 26 July 2026