If someone who works for you is injured, or becomes ill because of the job, the claim lands on the company. Employers’ liability insurance is the policy that pays the compensation and the legal costs. For most UK employers it is not optional. The law already requires it.
Meshed is an FCA-regulated UK broker. We place employers’ liability for UK limited companies and partnerships, from a panel of insurers. Broker fee is a flat 10%, with no admin add-ons.
If you want the wider “what does a UK company need” list, that sits on the business insurance hub. A visitor, a client, or a neighbour who is hurt is public liability — a different policy. This page is injury or illness of people who work for you.
Who this is for
UK limited companies and partnerships that employ anyone, or are about to, including:
Companies hiring their first employee
Firms with part-time, temporary, or casual staff
Companies that use labour-only contractors, apprentices, or people on work experience
Owner-managed companies that employ family and have assumed they are exempt
Companies whose certificate has lapsed, or was never displayed
We work with limited companies and partnerships, typically up to £30 million turnover. We do not currently place cover for sole traders.
If nobody works for the company except a director who owns most of the shares, you may be outside the duty. Do not guess that from a blog. Tell us who actually works, and we will say.
Who we have helped
We place employers’ liability for UK limited companies and partnerships: firms putting cover on before a first hire, companies that have been treating a regular contractor as if they were not staff, and boards whose certificate is missing, expired, or still written for last year’s headcount.
What it covers — and what it does not
The policy is there when someone who works for you, or used to, says the work injured them or made them ill.
Typical claims:
A slip, a fall, or a lifting injury in the office, the warehouse, or on a site
An illness blamed on the job — noise, dust, chemicals, stress that became a medical claim
A volunteer, intern, or person on work experience hurt while they were under your direction
A claim that arrives years later, from someone who has already left
It pays, up to the limit:
Compensation the company is legally liable for
Legal defence costs — you do not have to have been careless for a letter to arrive
Exact wording varies. We show you the gaps before you bind.
Employers’ liability does not cover a member of the public, a client, or a visitor. That is public liability. It does not cover a client who says your advice, design, or delivery cost them money. That is professional indemnity. It does not cover a director being sued for how they ran the company. That is directors’ and officers’. A road accident that should sit on motor insurance stays on motor.
It is not a health-and-safety get-out. You still have to look after the people who work for you. The policy is there so a serious claim does not wipe out the company.
Who counts as someone who works for you
The law looks at the real relationship, not the label on the invoice.
You usually need this cover for:
Permanent and part-time staff
Temporary, seasonal, and casual workers
Apprentices
People you tell when and where to work, and whose tools you supply — often called labour-only
You usually do not need it for someone who is clearly in business for themselves: they decide how the job is done, they bring their own kit, they can send a substitute, and they work for other clients. Tax status is not the test. Control is.
Volunteers, interns, and people on work experience are a grey area on the statute and a yes on most wordings. If they work under your direction, tell us. We will not leave them off a schedule that should include them.
Someone running their own contracting business is a different arrangement. The question is still the same: do you control the work like an employer? If you do, treat them as staff until we say otherwise.
Is employers’ liability required by law?
Yes, for most employers in Great Britain. The Employers’ Liability (Compulsory Insurance) Act 1969 is the statute. You need the cover as soon as you become an employer, for at least £5 million, from an authorised insurer.
Trading without a proper policy can mean a fine of £2,500 for each day you are not insured. You must also display the certificate where staff can see it — on the wall, the intranet, or the company site — and show it to an inspector. Failing that can mean a £1,000 fine.
Most UK policies are written at £10 million. That is the market default, not a special deal.
A limited company that employs staff needs this. Part-time, temporary, and casual workers count.
Three situations are often exempt. Check them against your facts, not against a hope:
Nobody works for the company. No staff, no labour-only contractors, no one you direct. The duty has not started.
You are the only employee, and you own 50% or more of the issued share capital. A one-director company that is only that person may be out. Add a second employee, or a second director on the payroll, and the duty starts.
A family-only unincorporated business. A sole trader or some partnerships that only employ close family can be exempt. That exemption does not apply to a limited company. If the company employs your spouse, your sibling, or your child, you still need the policy.
Staff who are normally based outside England, Scotland, and Wales sit under a different rule. If they spend more than a short stretch working here, you may need cover for that period. Tell us where people actually sit.
Public bodies and the NHS have their own exemptions. They are not this page.
None of this is legal advice. If you are unsure, we will say whether we can place it, and whether you look in or out of the duty, before you spend a week on forms.
The certificate
When a policy is bound, the insurer issues a certificate of employers’ liability insurance. It has to show the limit and who is covered.
You must put a copy where employees can actually get to it. A kitchen wall still works. So does the intranet or the company website, if people know where it is and can open it. Inspectors can ask to see it.
Keep the certificate and the schedule. A disease or hearing claim can arrive years after someone has left. The policy that responds is the one that was on risk when they were exposed, not the one you happen to hold today.
How much cover do I need?
The law’s floor is £5 million. That figure includes costs, so a serious injury can use it up faster than it reads.
In the UK market you will usually be offered £10 million. That is what most companies buy. Some contracts, sites, or higher-hazard work ask for more. We size it to the people and the work, not to a comparison-site default.
A group of companies can sit on one policy. The group as a whole still needs at least the legal minimum.
What it costs
Premium follows the people and the work: headcount, payroll, what they actually do, claims, and health-and-safety history. A two-person consultancy and a site team with the same headcount will not price the same.
We will not publish a “from £X a month” figure that only exists for the cheapest office risk on a comparison site.
What you can control: a proposal that describes who works for you and what they do, a current certificate if you have one, and not leaving a first hire uninsured while the paperwork catches up.
How Meshed works
You tell us the company, who works there, what they do, payroll, and current cover.
We review the documents and flag gaps in who is actually insured, the limit, the certificate, and whether public liability or another class is doing a job it cannot do.
We go to our panel and come back with options.
You bind. We stay on for mid-term changes and renewal — including the next hire.
Straightforward SME risks are often quoted in minutes. First hires with messy contractor arrangements, claims histories, or higher-hazard work can take longer. We will say that up front.
FAQs
What is employers’ liability insurance?
Cover if someone who works for you is injured or becomes ill because of the job. It pays compensation and legal costs, up to the limit.
Do I need employers’ liability insurance in the UK?
If people work for you, almost certainly yes. It is a legal duty for most employers, not a nice-to-have. The exceptions are narrow. For a limited company with staff, it is a yes.
I am the only director. Do I still need it?
Maybe not, if you are the company’s only employee and you own 50% or more of the shares. The moment someone else works for the company — including a family member on payroll — treat it as required until we say otherwise.
We only employ family. Are we exempt?
Not if you are a limited company. The family exemption is for some unincorporated businesses. Incorporate, and it falls away.
Do I need it for contractors or freelancers?
If you control when, where, and how they work, or you supply the tools, treat them as staff. If they run their own business, bring their own kit, and can send someone else, you often do not. Tell us the arrangement. Do not decide from the word “contractor”.
What about volunteers, interns, or work experience?
If they work under your direction, include them in the conversation. Most wordings pick them up. A company with no EL at all should not take them on and hope.
What is the difference between employers’ liability and public liability?
Employers’ liability is a person who works for you. Public liability is everyone else — a client, a visitor, a neighbour. They are different policies. Most companies that meet people need both. Public liability is here.
How much cover do I need?
At least £5 million by law. £10 million is what the market usually writes. We will not sell you the floor if the work needs more.
Do I have to display the certificate?
Yes. Staff have to be able to see it — on a wall, the intranet, or the company site. Inspectors can ask. Keep a copy. Claims can arrive years later.
What happens if we do not have it?
You can be fined £2,500 for each day you are not properly insured, and £1,000 if the certificate is not available. A serious injury with no policy sits on the company.
I am a sole trader. Can you help?
Not currently. We place cover for limited companies and partnerships only.
Are you an insurer?
No. Meshed is a broker. Mesh'd Limited trading as Meshed is authorised and regulated by the Financial Conduct Authority under firm reference number 1033248.
How fast can we bind?
Clean renewals and a standard first-hire EL can be same-week. Missing payroll figures, a claims history, or a contractor arrangement that is really employment take longer.
Vincent Liu
Co-founder & CTO
