Employers liability insurance

Covers claims from employees who have been injured or become ill as a result of working for you.

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Award-winning cover
Only pay for what you need

Comprehensive, flexible cover

Your team is growing. Fresh faces, skills and energy. A few more pairs of hands to lighten the workload.

A valuable asset, your people are key to your success. Looking out for them makes sense, and it’s a legal requirement.

Employers liability (EL) insurance gives your team reassurance, while protecting your business. It’s a win win.

From £5.35 per month

Compulsory for employers
Covers legal costs
Work related sickness
Working from home

Why employers liability insurance?

Workplace risks

All the health and safety in the world can't protect you from workplace accidents and sickness. And if one of your staff becomes ill or injured while they're working for you, your business could be held liable. If that happens, employers liability insurance will ensure you can defend yourself and cover any compensation costs.

It's the law

Employers liability insurance is a legal requirement for every employer in the UK – even those who just work with contractors, casual, temporary or part-time staff. Your policy must cover you for at least £5m, and you can face expensive fines to the Health and Safety Executive if you don't have it.

Compensation culture

The rise of 'no win, no fee' services has made the chances of a facing an employers liability claim more likely, even if your business isn't to blame. It only takes an allegation that you've done something wrong and these services make it easy for employees (and ex-employees) to take action against you.

Digital Risks make insurance easy!

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Hassle-free insurance

Arrange your business insurance in minutes, by getting a quote and buying your policy online. No confusing forms or jargon, just plain English and a fast, seamless experience.

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Flexibility and growth

Our monthly subscription model gives you ultimate flexibility, with the option to cancel or change your cover at any time. No more annual contracts, it's insurance that grows with your business.

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Making a claim

Need to make a claim? With Digital Risks, it's a piece of cake. No outsourcing to third parties or lengthy delays, all claims are handled by our team personally and on a first-name basis.

Who needs employers liability insurance?

If you're a UK business with one or more employees – including contractors, casual, temporary or part-time staff - then employers' liability insurance is a legal requirement. The only exceptions are immediate family members and employees working abroad, although the latter may be covered under similar laws where they are based.

Employers liability insurance guide

What is employers liability coverage?

Taking on employees brings a lot of responsibility, not least ensuring everybody stays safe and well while working for you. Risks are part and parcel of running a business, even if you’re office-based, which means accidents can happen and employees can suffer injury or illness, whether down to trips, slips, back-pain or repetitive strain. And if that happens, your business could be found liable, facing hefty legal costs and demands to pay compensation.

In situations like this, an employers’ liability policy is your lifeline, as it will cover the costs involved in a claim, ensuring you can defend your case and stump up any compensation payments. It will even pick up any potential fines you could face from the Health & Safety Executive, which is responsible for safeguarding staff in the workplace. Oh, and did we mention employers’ liability cover is a legal requirement? So, it should be a top priority as soon as you start building your team.

When do you need employers liability insurance?

No excuses. EL is a compulsory insurance for businesses that employ one or more people, which means as soon as you take on staff, you are required to have it by law. That includes if you take on contractors, casual, part-time or temporary staff.

The only times you could be exempt is if you’re a public organisation, if you employ a family member, or have employees based abroad. Although, in the latter case, your staff may very well be covered by laws in the country where they are based. If you are a sole trader, you don’t require EL.

What are the risks?

Whatever business you’re in, employee claims can cover a whole host of workplace hazards, from broken bones caused by a fall, posture issues from bad seating or mental health issues blamed on stress or pressure. Even if you’ve done everything in your power to look after the wellbeing of your staff, sometimes events are out of your control.

We also live in the days of ‘no win no fee’ lawyers that have made it easier than ever for employees to make a claim about recent or historical issues. This compensation culture can cost businesses millions in pay-outs and legal costs, putting a serious dent in your finances and reputation.

Things you can do

To minimise the chance that you’ll face an employers liability claim, you need to get acquainted with your health and safety and risk management obligations. As a startup or small business in the digital, tech or media sectors, this shouldn’t be too big a task, however you should carry out a risk assessment and ensure you have taken steps to control and mitigate the most significant hazards facing your employees. If you have more than five staff you should also have a written health and safety policy. Beyond that, make sure all staff are given the training, information and instructions they need to do their job safely and effectively, and have first aid arrangements, in case an accident ever occurs on site. For more information, the Health & Safety Executive should be your first port of call.

What to watch out for

As an employer, you can be fined as much as £2,500 per day that you go without employers liability insurance. When you purchase EL from a business insurance provider you’ll receive a certificate, which must be displayed either on your premises or online, where employees can find it and where it is accessible to inspectors from the HSE. Failure to do this could result in a fine of up to £1,000. Make sure your insurance cover is purchased from an authorised insurer and if you’re not sure, consult the Financial Conduct Authority (FCA), which has a list of these.

Read our Ultimate Guide to Fintech & Startup Insurance to find out more.

Other covers to consider

Professional indemnity

Covers your liability to customers for professional mistakes, errors or omissions in services you provide.

Cyber security

Covers your liability for failing to protect data, as well as penalties for not complying with data protection law.

Contents and equipment

Protects your property against theft, loss or damage.

Management liability

Covers you for negligence in media content and advertising, including website, blogs and social media.

We're rated excellent by our customers

Excellent value at an affordable monthly cost. I have not needed use the services. But its good to know I have the insurance there to allow me to get on with my work.

James, J. Black Photography

Flexible. simple, easy, immediate. As a busy freelancer I need flexibility to potentially change the policy month by month - very handy and a feature I didn't find with other providers.

Tim, Graphic Design Freelancer

Excellent service, and really lovely people. Completely understanding of small or start up businesses, and a willingness/ability to be flexible. I'm very happy.

Lorna, Magic Penny Gifts

A super slick interface and all around great experience. Thumbs up Digital Risks! Having spoken to a number of "large" insurers, the pricing I received from Digital Risks was much more competitively priced for "like for like" cover. Highly recommended.

Jonathan, Frello

Employers liability insurance FAQs

What is employers liability insurance and what does it cover?

If you employ people in your business, then you are responsible for their health and safety at work. In the event that one of your employees (past or present) suffers (or claims to suffer) an injury while working for you, employers liability insurance covers your business for any possible legal fees or compensation payments. It is also a legal requirement and you can be fined by the Health & Safety Executive for every day that you don’t have it.

What kind of businesses do you provide cover for?

Is it mandatory to take out employers liability insurance?

Do I need a employers liability certificate?

How do I get a employers liability certificate?

What isn’t covered by employers liability insurance?

What are the levels of this cover and how much will it cost me?

How can I pay for my cover?

How do I get an invoice?

How can I make changes to my employers liability policy or make a claim?

What excess would I need to pay?

What kind of claims does employers liability cover?

What else do I need?

Further reading

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The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.

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Our insurance products are underwritten by security with Standard & Poor's A-rated financial strength or higher. This means the insurer has been independently assessed by the world’s leading credit rating provider and found to have a strong capacity to meet financial commitments (pay claims).

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If you are a business with an annual turnover under £1m, charity with an annual income under £1m, or trust with net assets under £1m, then you will be entitled to compensation from the FSCS in the unlikely event we cannot meet our obligations. Full details and further information on the scheme are available at www.fscs.org.uk