Employers Liability Insurance - Horner Blakey

Employers Liability Insurance

The financial risks and challenges faced by your business can arrive from a variety of sources, including your own employees. That’s why it’s important to have strong financial cover like employers’ liability insurance that can give you more protection when faced with compensation claims and legal defence costs.

Horner Blakey

Insurance Brokers

What is employers’ liability insurance?

At Horner Blakey, we are leading insurance brokers in London. Our second location in Billericay allows you to be supported by our local insurance brokers in Essex.

If you employ staff in your business, employers’ liability insurance offers financial protection in the event they make a claim due to an injury or illness they believe was a result of the work they do for you. Almost all businesses in the UK are legally required to have employers’ liability insurance, so it is important that you check whether it applies to you.

Man in suit writing a document

Do I need employer’s liability insurance?

If your business employs people who are not direct family members you are legally obliged to ensure you have this type of insurance in place. The Employers’ Liability (Compulsory Insurance) Act 1969 states this requirement and fines of up to £2,500 for every day you do not have the insurance can be issued by the Government.

Injuries in the workplace can happen, even the safest of environments, so it’s important to have insurance cover that can protect you against potential claims. Employees that develop a chronic illness or even a repetitive strain injury from their work could also sue your business, and if they win their claim, the compensation and legal defence costs could be huge, placing your venture into unknown and uncertain territory.

When you have employer’s liability insurance in place, it can give you peace of mind that should a scenario like this occur, you have some financial protection that can minimise its effect on your business. Horner Blakey can help you find the right level of cover for your business and match you with the best insurance provider that can take care of your needs.

Before proceeding with any insurance agreement, always read the full details of your individual policy as terms and conditions will apply.

What does employers’ liability insurance cover?

When you take out employer’s liability insurance it can provide cover for things like:


  • Compensation awards made due to a lost claim can be covered by this type of insurance.

Legal costs

  • You can cover the costs of defending yourself in court against claims made by employees.

Medical bills

  • Financial cover to pay for medical treatment costs for sick or injured employees.

Lost income

  • You could also use the policy to cover income lost by the employee while they are sick or injured.

£10m cover

  • Policies valued up to £10m could also be available if required.

Are there any exemptions from employers’ liability insurance?

Most businesses are legally required to have employers’ liability insurance although some may be exempt:

Limited companies

  • Limited companies with one employee who owns more than 50% of the shares do not need employers’ liability insurance.

Sole traders

  • Sole traders that work on their own and do not employ any staff are also exempt.

Family members

  • Businesses that employ direct family members do not need to take out this cover.

Public organisations

  • Most public organisations, health services and government bodies rely on a different type of insurance.

If you are unsure whether you need employers’ liability insurance, Horner Blakey can help you assess the criteria to ensure you remain legally compliant. Even if you are exempt, there are a variety of other insurance options that may be relevant to your business and could improve your ability to deal with unexpected events.