Employers Insurance UK 2026: What Every Business Owner Must Have

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 4 Apr 2026

Last reviewed 15 Jun 2026

✓ Fact-checked

★ Featured Partner · Sponsored

Compare Insurance Quotes

Search and compare quotes from leading UK insurers. Quotezone's panel includes specialist insurers not always on the four major comparison sites.

Compare Quotes →

By Chandraketu Tripathi | Updated April 2026

Employers' liability insurance is the only business insurance that is a legal requirement in the UK. If you employ anyone — even a single part-time worker or occasional casual labourer — you must have it in place from their very first day of work. The fine for non-compliance: up to £2,500 per day per uninsured employee. The average EL claim: over £14,000. This guide explains what you need, what it costs, and what to watch out for.

Our Verdict

Employers' liability insurance is legally required from day one of employing anyone. Minimum cover: £5 million. Most insurers offer £10 million as standard — recommended for all businesses. Cost: typically £50–300/year for most small businesses — often the most affordable cover in a business insurance package. Always display your EL certificate at every workplace and keep certificates for 40 years.

Employers Insurance: The Legal Framework

Source: HMRC, HSE, Employers' Liability (Compulsory Insurance) Act 1969. April 2026.
Requirement	Detail
Legal basis	Employers' Liability (Compulsory Insurance) Act 1969
Who must have it	Any UK business employing people — full-time, part-time, temporary, casual, apprentice
Minimum cover	£5 million per incident (most insurers provide £10 million)
Fine for non-compliance	Up to £2,500 per day per uninsured employee
Certificate display	Must be displayed at each workplace — digital display acceptable
Record retention	Keep certificates for 40 years after expiry
When cover must start	From the employee's first day of work — not after probation

Employers Liability Insurance Costs UK 2026

Source: Simply Business, AXA, nesto.co.uk. April 2026.
Industry	Typical Annual Premium (5 employees)	Risk Level
Office / professional services	£60–120/year	Low
Retail / hospitality	£100–250/year	Medium
Light manufacturing / workshop	£150–400/year	Medium-High
Construction / building	£250–600/year	High
High-risk trades (roofing, scaffolding)	£400–1,200+/year	Very High

Who Is and Is Not Covered by Employers Liability

Worker Type	EL Required?	Notes
Full-time permanent employees	✅ Yes	Core requirement
Part-time employees	✅ Yes	Hours do not affect the requirement
Temporary workers / agency staff	✅ Yes (if you control their work)	Check agency's own EL too
Casual / zero-hours workers	✅ Yes	Even occasional workers count
Apprentices	✅ Yes	Apprentices are employees under EL law
Labour-only subcontractors (LOSC)	✅ Yes	Work under your control — treated as employees
Bona fide subcontractors (BFSC)	❌ No (their responsibility)	They have their own insurance — verify
Sole trader, no employees	❌ Not required	No employees = no EL requirement
Family members (unincorporated)	❌ May be exempt	Exemption disappears if incorporated

Best Employers Liability Insurance Providers UK 2026

Simply Business — UK's largest broker, fast online quotes, EL typically included in combined business policies
AXA — competitive EL as part of comprehensive business packages
Hiscox — strong for professional services EL
Direct Line for Business — reliable, competitive for standard business types
Bionic — comparison across multiple EL providers, FCA-regulated broker

Frequently Asked Questions

What is employers insurance in the UK?

Employers insurance — formally called employers' liability (EL) insurance — is legally required for any UK business that employs people. It covers claims from employees who are injured or become ill as a result of their work. The minimum legal cover is £5 million. Failure to have it risks a fine of up to £2,500 per day per uninsured employee.

Who needs employers liability insurance in the UK?

Any business employing people in the UK needs employers' liability insurance, from the employee's first day of work. This includes full-time, part-time, temporary, casual, agency, and apprentice workers. Sole traders with no employees are exempt. Family members working in an unincorporated business may be exempt — but once incorporated, all employees (including family) must be covered.

How much does employers liability insurance cost UK 2026?

Employers' liability insurance is typically the most affordable business insurance in the UK. Office-based businesses typically pay £50–150/year for EL. Retail and service businesses: £100–300/year. Construction and manual trades: £200–800+/year. For most small businesses, EL can be combined with public liability in a combined policy at minimal additional cost above the PLI premium.

What is the minimum employers liability cover required UK?

The Employers' Liability (Compulsory Insurance) Act 1969 requires a minimum of £5 million of EL cover per incident. Most insurers offer £10 million as standard — this higher limit is recommended for businesses in higher-risk industries where a catastrophic accident could result in multiple large claims. Always check your policy schedule — the figure on the EL certificate must be at least £5 million.

How long must I keep employers liability certificates UK?

You must keep employers' liability insurance certificates for 40 years after they expire — even long after your business closes. Industrial diseases (such as asbestosis, mesothelioma, and occupational deafness) can take decades to manifest, and former employees can bring claims against your historical policies many years after leaving your employment. Store certificates securely — ideally in cloud storage.

Related Articles

Disclaimer: Prices change frequently — always verify with providers. Sources: Drewberry, keyperson.quest, MoneySuperMarket, Legal & General, HJS Technology, Connection Technologies, Simply Business, Bionic, expertsure.com, HMRC. April 2026.