Employers' Liability Insurance Compliance Check

The Employers’ Liability (Compulsory Insurance) Act 1969 and the Employers’ Liability (Compulsory Insurance) Regulations 1998 require almost every UK business that employs people to hold Employers’ Liability (EL) insurance with a minimum of £5 million cover, from an authorised insurer. The policy protects employees who are injured or made ill by their work and who bring a compensation claim against you. Operating without it is a criminal offence: businesses can be fined up to £2,500 for every day they are uninsured, and up to £1,000 for failing to display the certificate or produce it to a Health and Safety Executive (HSE) inspector.

Many small businesses assume they are exempt or under-insured. The definition of “employee” is wider than many expect and can include apprentices, some temporary and agency workers, and workers who are labour-only subcontractors, as well as staff working from home. Exemptions are narrow — for example, a company whose only employees are family members or where the sole employee is the owner with a 50%+ shareholding. Cover must also match your actual activities and headcount, and your certificate must be current and accessible to staff, either as a displayed paper copy or electronically. A lapse in renewal or a mis-described business can leave you personally exposed to an uninsured claim.

This check reviews whether your Employers’ Liability insurance meets the legal minimum and covers the right people, so you are protected if an employee makes a claim.