What Cover Do I Need As An Employer?

What Cover Do I Need As An Employer?

When it comes to cover for employees there are two types of cover you should be considering. One of which is a legal requirement.

Employers' Liability Insurance

Not having the right insurance as an employer can result in hefty fines and a trip to court. So, if you’re thinking of taking on employees and have not yet taken out insurance – you have come to the right place.

In short, if you have any employees, Employers’ Liability insurance is a LEGAL REQUIREMENT.


Key Facts:

  • You need to be covered for at least £5 million and it must come from an authorised insurer
  • You can be fined £2,500 for every day you are not properly insured
  • You can be fined £1,000 for not displaying your EL certificate or refuse to make it available to inspectors when they ask

Are there exceptions to the rule?

Yes, there are some cases where you can have employees but not need Employers’ Liability Insurance.

The first being, if you are ONLY employing family members. This includes:

  • Spouse/Civil Partner
  • Parent
  • Grandparent
  • Step-parent
  • Child
  • Grandchild
  • Step-child
  • Sibling
  • Step-Sibling
  • Half-Sibling

You may also not need Employers’ Liability if you employ someone who is based abroad. If either of these are the case, speak to your broker to discuss the details.

What will Employers’ Liability cover me for?

Employers’ Liability insurance will cover you in several instances. The main protection EL provides is from claims of illness or injuries sustained by employees because of their work.

This can be as the result of an accident, e.g. an employee falls from height due to unregulated work. Or slips a wet floor and injures their leg, leaving them unable to work.

This can also be down to exposures to harmful toxins or activities. For example, people working in construction have an increased risk of respiratory diseases and Hand-Arm Vibration Syndrome through their work.



In the long term, this can result in costly Employers’ Liability claim.

Business Interruption Insurance

Another form of insurance that will impact your employees is Business Interruption. This covers you in the event of a disaster. This might be a flood, fire, cyber-attacks, or supply chain disruption just to name a few.

When buying cover, make sure you factor in employee’s salaries. In cases of underinsurance, which are often not realised until after a disaster, employees find themselves without pay during the time the business is not operating.

Health Benefits

As an employer, you are also able to purchase health and life insurance for your employees.

Offering your employees health, life and dental insurance can be a great benefit package which can increase company loyalty and job satisfaction.

If you are interested in setting up a policy for your employees, be sure to speak to our team when you are getting your business insurance quote.

FREE Business Insurance Review

Insync Insurance can help to keep your business on the right side of the law and your employees’ favour.

You can request a quotation online, alternatively, why not book a free review with one of our Business Insurance Gurus via our website or by calling Insync Insurance on 0330 1240730.