AT A GLANCE
How the cover works
Employers’ Liability insurance protects an employer when an employee alleges that work caused injury or illness. Most employers in Great Britain and Northern Ireland must hold qualifying cover, although the detailed legal framework and exemptions differ.
The insurance assessment should describe who works for the organisation, what they do, where they work, the equipment and substances involved, and how health and safety is managed.
COVER
What may be covered
- Compensation where the employer is legally liable for an employee’s injury or occupational illness.
- Legal defence, investigation and expert costs incurred with insurer agreement.
- Claims from former employees where the disease or injury arose during an insured period.
- Employees working temporarily away from the main premises, subject to territorial provisions.
- Different categories of worker included within the wording’s definition of employee.
Cover varies by insurer and applies only as stated in the schedule and policy wording.
BOUNDARIES
Common exclusions and limitations
- Fines, penalties and criminal sanctions arising from health-and-safety breaches.
- Deliberate injury and liabilities that cannot lawfully be insured.
- Work or territories outside the declared business and policy scope.
- Claims arising from known circumstances not disclosed when cover was arranged.
- Motor liability where compulsory motor insurance is the appropriate cover.
This is not a complete list. The quotation, schedule and full wording determine the actual cover.
CLAIMS IN PRACTICE
How a claim might arise
01. An employee falls from access equipment and alleges inadequate training or supervision.
02. A former worker develops an occupational disease and alleges exposure during earlier employment.
03. A member of staff is injured while lifting equipment and claims the workplace system was unsafe.
These scenarios are illustrative only and do not confirm that a particular claim would be covered.
CHOOSING COVER
Questions worth resolving
- Confirm which workers count as employees, including temporary, casual, apprentice and labour-only personnel.
- Describe work at height, manual handling, machinery, driving, heat, hazardous substances and work away.
- Maintain risk assessments, training, inspection and incident records.
- Keep historic policy certificates because long-tail disease claims may emerge years later.
- Check that the policy limit and insurer satisfy the applicable statutory requirements.
CONNECTED RISKS
Related protection to consider
- Public Liability for injury or property damage suffered by third parties.
- Management Liability for employment-practices allegations such as discrimination or wrongful dismissal.
- Personal Accident for defined injuries without requiring proof of employer negligence.
- Contractors All Risks and plant cover for construction and contracting activities.
QUESTIONS
Frequently asked questions
Is Employers’ Liability compulsory?
Most employers must hold it, subject to limited exemptions. The applicable law and required evidence should be checked for the organisation and jurisdiction.
Who is treated as an employee?
The policy definition can extend beyond permanent payroll staff. Control, equipment, work arrangements and tax status may all be relevant.
How long should certificates be kept?
Historic evidence is valuable because occupational-disease claims can arise many years after exposure.
Does the policy pay every workplace injury?
No. It responds according to legal liability and the policy terms; statutory benefits and other covers operate differently.