Employers Liability

By law, an employer must have Employers Liability (EL) insurance and be insured for at least £5 million. Most insurers automatically provide cover of at least £10 million. EL insurance must cover all your employees.

• WARNING You can be fined up to £2500 for each day that you do not have employers liability insurance.

Employers' liability cover enables businesses to meet the costs of compensation and legal fees for employees who are injured or who become ill through work as a result of the employer’s negligence.

Your liability premium is calculated upon the number of employees you have or annual turnover. An employee is someone who you deduct national insurance and income tax from, someone who you instruct when, where and how they work.

If you do not make deductions from their pay and, if they substitute someone else to do their job when they are unable to then it is likely that the person you are paying is a contractor.