The legal requirement
The Employers’ Liability (Compulsory Insurance) Act 1969 requires most employers in England, Scotland and Wales to hold insurance covering their liability for injury or illness suffered by employees in the course of their work. GOV.UK states the policy must provide at least £5 million of cover and come from an authorised insurer. Northern Ireland has its own equivalent rules.
The penalties
According to GOV.UK, you can be fined £2,500 for every day you’re not properly insured, and up to £1,000 if you don’t display your certificate or refuse to make it available to inspectors. Directors and managers can also be personally liable in some circumstances. Beyond fines, an uninsured employer would face any compensation claim alone.
Who counts as an employee
It isn’t only people on payroll. Casual, seasonal and temporary workers can count, and so can some labour-only subcontractors, depending on how much control you have over their work and who provides the equipment. If in doubt, ask your insurer and check GOV.UK’s guidance.
Staying compliant
- Arrange cover before the first person starts work.
- Display the certificate or share it electronically where staff can access it.
- Keep old certificates: disease claims can arise years later.
- Tell your insurer about changes in activities, staff numbers or locations.
More in our employers’ liability guide.
Last updated: 16 September 2026
