Employers’ Liability Insurance Edinburgh
Protect Your Business and Your Employees
If you employ people, you have a responsibility to protect them while they’re working for your business.
Employers’ liability insurance helps protect your business against claims from employees who become injured or ill as a result of their work. For most employers in the UK, having employers’ liability insurance is a legal requirement. For most businesses, this applies from day one of employment.
At Edinburgh Insurance Brokers, we help businesses understand their responsibilities and arrange appropriate employers’ liability cover based on how they operate, who they employ and the work they carry out, and provide practical guidance on meeting these requirements.
What is employers’ liability insurance?
Employers’ liability insurance is designed to protect your business if an employee claims that they have suffered an injury or illness because of their work.
A claim could arise from an accident at your workplace, an injury caused by equipment, or an illness that develops as a result of working conditions.
If your business is found liable, you could be responsible for compensation and legal costs. Employers’ liability insurance can help protect your business against these costs.
What does employers’ liability insurance cover?
Workplace injuries
If an employee is injured while carrying out their duties and your business is found responsible, the policy may help cover compensation and associated legal costs.
Example: An employee slips on a wet floor at your premises and suffers an injury.
Accidents involving equipment
Employees who use tools, machinery or other equipment may be exposed to additional risks.
Example: An employee is injured while using equipment provided by the business and subsequently makes a claim.
Legal costs
Defending an employers’ liability claim can be expensive. Depending on the circumstances and policy terms, employers’ liability insurance can help with eligible legal costs associated with a claim.
How much does employers’ liability insurance cost?
The cost of employers’ liability insurance depends on the circumstances of your business.
Insurers may consider factors including:
- Number of employees
- Annual wage roll
- Type of work carried out
- Industry and level of risk
- Whether employees work on-site or at customers’ premises
- Previous claims
- The level of cover required
A small office-based business may have very different insurance requirements from a construction company employing workers on building sites.
That’s why we help businesses find cover based on their individual circumstances.
Employers’ liability for trades and construction businesses
Employers’ liability is particularly important for businesses operating in construction and the trades, where employees may work with tools, machinery, vehicles and materials or carry out work at customers’ properties and construction sites. Many contracts also require you to hold a specific level of employers’ liability cover when working as a contractor or subcontractor, including cover for risks arising from each site event.
If you regularly use subcontractors or are unsure whether someone working for your business should be covered, we can help you understand your insurance requirements and make sure your cover reflects how your business operates, including when labour-only subcontractors may need to be treated as employees for employers’ liability purposes.
Employers’ liability vs public liability insurance
Employers’ liability insurance – Protects your business against eligible claims made by employees relating to injury or illness arising from their employment.
Public liability insurance – protects your business against eligible claims from third parties, such as customers, clients or members of the public, involving personal injury or property damage. If you have premises, it can also overlap with occupiers liability duties you owe to visitors.
Depending on your business, you may need both types of cover. Public liability limits are usually set by the business with the insurer. Many claims involve lower-value injuries or damage, but costs can still add up.
What isn’t covered by employers’ liability insurance?
Employers’ liability protection is not designed to cover every type of business risk.
Depending on the policy, exclusions may include:
- Deliberate or intentional acts
- Claims unrelated to your employees’ work
- Activities that haven’t been disclosed to your insurer
- Certain types of work excluded by the policy
- Damage to your own business property
- Claims that fall under other types of insurance
At Edinburgh Insurance broker we will explain exactly what is and isn’t covered.
Straightforward advice for your business
If you employ people, making sure you have appropriate employers’ liability cover is an important part of protecting your business.
Whether you’re employing your first member of staff or managing an established team, we can help you understand your insurance requirements and arrange suitable cover. Talk to Edinburgh Insurance Brokers about employers’ liability insurance and the other covers your business may need.
Frequently Asked Questions
Employers’ liability protection
Is employers’ liability insurance compulsory?
For most employers in the UK, yes. Employers are generally required to have at least £5 million of employers’ liability insurance from an authorised insurer, although certain exemptions apply.
Is employers’ liability insurance compulsory?
For most employers in the UK, yes. Employers are generally required to have at least £5 million of employers’ liability insurance from an authorised insurer, although certain exemptions apply.
Can Edinburgh Insurance Brokers help with employers’ liability insurance?
Yes. We can discuss your business, employees and activities and help you understand the cover you may need.
How much employers’ liability insurance do I need?
Most businesses that are legally required to have employers’ liability insurance need at least £5 million of cover. Some contracts or businesses may require £10 million.
Does employers’ liability cover public liability claims?
No. Employers’ liability and public liability insurance cover different types of claims. Many businesses need both.
Do part-time employees need to be covered?
Yes. Part-time workers can still count as employees for employers’ liability purposes.