Employers' liability insurance

You must get Employers’ Liability (EL) insurance:

  • as soon as you become an employer
  • to cover you for at least £5 million
  • from an authorised insurer

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

You do not need EL insurance if you only employ either:

  • a family member (this could be your husband, wife, civil partner, father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, grandson, granddaughter, step-son, step-daughter, brother, sister, half-brother or half-sister)
  • someone who is based outside of England, Scotland and Wales

You can be fined £2,500 every day you are not properly insured.

Check to see if your insurer is authorised by looking at the Financial Conduct Authority register or contact the Financial Conduct Authority.

You may want to use an insurance broker to help you buy EL. You can find a list of insurance brokers on the British Insurance Brokers’ Association website.

Display your EL certificate

You must do both of the following:

  • display your EL certificate where employees can access it (for example at your workplace, on your website or work intranet)
  • show it to inspectors when they ask

If you do not, you could be fined £1,000.

Part of Get ready to employ someone for the first time: step by step

  1. Step 1 Check that you’re taking on someone as an employee

    Follow these steps if you want to take on someone with the employment status of ‘employee’ for the first time.

    1. Check who counts as an employee

    The rules are different if you want to take on someone with another type of employment status, such as agency staff, freelancers, consultants and contractors.

    1. Check your responsibilities when you take on someone with a different employment status and contract type

  2. and Check you can afford to take on employees

    1. Check how much the National Minimum Wage is
    2. Find out how much National Insurance you need to pay for your employees
    3. Check how much sick pay your employees are eligible for
    4. Check how much you need to pay towards your employee's pension
    5. Check how much Maternity Leave you need to pay your employees
    6. Check how much Paternity Leave you need to pay your employees

  3. Step 2 Make your workplace safe and accessible for employees

    1. Prevent discrimination
    2. Make your workplace accessible for employees with disabilities or health conditions
    3. Keep employee information and data safe
    4. Find out about fire safety
    5. Find out about health and safety on the Health and Safety Executive website

  4. Step 3 Register as an employer and set up PAYE

    You need to register with HMRC so you can pay tax and national insurance for your employees.

    1. Register as an employer and set up PAYE
    2. Choose how to run payroll
    3. If you decide to run payroll yourself, choose payroll software

  5. Step 4 Check your responsibilities around workplace pensions

    1. Understand your pension responsibilities as an employer

  6. Step 5 Get Employers' Liability insurance

    1. You are currently viewing: Find out about Employers' Liability insurance

  7. Step 6 Recruit and employ someone

    1. Employ someone