What does employers’ liability insurance cover?

Employers’ liability insurance will help to cover the cost of settling and defending any claim made by an employee against your business. This includes compensation pay-outs and legal fees should the case go to court.

If an employee claim does end up in court, a compensation sum might reflect factors such as medical costs and loss of income due to the employee not being able to work. Employers’ liability will cover this cost up to the policy limit.

It might be vital to have an employers’ liability insurance policy in place as it’s a legal requirement for most UK firms. You could be held responsible for any injury your employees sustain while carrying out work for your business.

A policy covers all injuries, from what might seem like an innocuous trip or slip, to a long-term illness suffered because of their work. It could be important to note that claims can still be made after an individual has stopped working for your business – this is because symptoms may only become apparent after several months.

You can’t predict or even prevent accidents from happening, but you can safeguard your business from the financial repercussions. Employers’ liability cover can be a lifeline, especially for small businesses and sole traders who might not otherwise have access to the necessary funds.


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Our FAQ pages provide general information and background around the topic covered. FAQ pages are reviewed and monitored periodically by our insurance experts. But the content is not intended to be read as advice and any material is for general information purposes only. If you would like advice for any content, please seek professional assistance.