Who needs it
You normally need employers’ liability insurance as soon as you employ anyone, including part-time, temporary and casual staff. Whether someone counts as an employee for this purpose depends on the working relationship, not just their contract: for example, whether you deduct tax at source, supply their tools, or control how and when they work. Subcontractors in construction can sometimes count. GOV.UK has a guide to who counts.
Exemptions
Exemptions include businesses that only employ close family members (unless incorporated as a limited company), companies with only one employee who also owns 50% or more of the shares, and most public bodies. The exact list is on GOV.UK, and it’s worth checking because getting it wrong carries daily fines.
Certificates and record-keeping
Your insurer issues a certificate of employers’ liability insurance. You must display it where employees can easily read it (or make it available electronically) and show it to inspectors on request. Keeping old certificates is good practice: illness claims, such as industrial disease, can surface decades later, and the Employers’ Liability Tracing Office (ELTO) helps people trace historic policies.
Outside Great Britain
In the US, the equivalent protection is workers’ compensation, which is set by each state. Many EU countries cover workplace accidents through statutory social insurance funded by employer contributions, sometimes alongside private employer liability cover. If you employ staff abroad, check the rules in each country. See insurance in Europe.
Last updated: 15 October 2026
