Employers’ liability is a legal requirement for any business that has employees in the UK. Our partner AXA have made a guide to explain what it is, the risks you face if you don’t have cover, and how they can help

What is Employers’ Liability Insurance?

It’s a type of business insurance that protects your employees if they get accidentally injured on the job. Or if they fall ill as a result of working for your business. It means that if something unfortunate happens to an employee on your watch, you’re covered for the costs of their claims.

These claims aren’t limited to current employees. You can also face a claim from a former employee if they believe that an injury or illness was caused by working for you.

Who counts as an employee?

An employee is anyone who is employed by your business. No matter their employment type or how long they've been employed by you. This includes:

• full time, salaried employees
• part time staff
• self-employed contractors you’ve hired
• temporary staff, apprentices, or volunteers
• people taking part in training schemes or work experience.

The 1995 court case of Lane v The Shire Roofing Company (Oxford) Ltd is a helpful example of who the law counts as an employee.

Is anyone exempt?

There are a small number of businesses that are the exception to this rule.

Businesses that only employ close family members don’t need it, as long as they’re not incorporated as limited companies.

Many family businesses still choose to take out an employers’ liability policy for peace of mind. A claim from a family member could still be valid, and leave you out of pocket.

But do I really have to have it?

In short, yes you do. It’s a legal requirement under the Employers’ Liability Act 1969 for all UK businesses. If you don't have the right cover in place, you could face serious consequences for you and your business.

What happens if I don’t have it?

If you’re found to not have the proper insurance in place when you should have, you’ll have to pay any claims out of your own pocket. And you’ll face legal consequences as well.

You can be fined £2,500 by HMRC for every day you’re uninsured.

On top of that, you could be fined an additional £1,000 if you don’t:

• display your employers’ liability certificate where employees can access it. For example, at your workplace, or on your website or work intranet
• show it to inspectors when they ask for it.

How AXA can support you

There are many reasons to choose AXA cover. Here are just a few of them.

• You get £10m cover as standard

Employers’ Liability Insurance must cover you for at least £5 million, as per the UK government’s guidance. But that’s not always enough, so AXA give you £10 million cover as standard.

• Court attendance costs are covered

If AXA need you to be in court because of a claim, they’ll pay directors £500, and employees £250.

• 50 days of cover for temporary employees

AXA’s cover automatically provides 50 days of cover for temporary employees of your business.

• Free access to a tax and legal helpline

With AXA, you’ll get free access to a tax and legal helpline* provided by Arc Legal Assistance Ltd. It’s reassurance when you need it most.

Next steps

AXA have an online tool that makes getting a quote quick and easy.

Explore AXA

If you’d like a bit more information, you can check out AXA's full guide to Employers’ Liability Insurance.

AXA isn’t part of the Santander group.

*The guidance is provided on behalf of AXA by Arc Legal Assistance Ltd who are authorised and regulated by the Financial Conduct Authority.