Employers’ Liability Insurance

Another one of those posts with an important footnote (see below).

Employers need an Employers’ Liability Insurance to the value of at least £5m (though most of the insurance providers offer a minimum of £10m I believe?).

Members occasionally ask us if they need it for their own limited company. If such a company employs people, or the one person working for the company owns less than 50% of the shares in the company, then Employers’ Liability Insurance is needed.

If the company is hiring self-employed sole traders to work for it, they will probably need this insurance as well – if the HSE thinks that they are an employee (and there are similar tests for this to the ones that determine employment status and employee tax status around supervision/direction/control and the supply of equipment, etc).

Usual footnote though. If this is a concern to you, take professional advice. This site offers a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, and it should not be used in place of professional advice.

The author, Bectu and Prospect disclaim all responsibility for loss arising from any action taken or not taken by anyone using the information in this blog.

There’s a good summary on Employers’ Liability here. The .gov page is here.


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