Employers' Liability Insurance
Employers' liability insurance is compulsory for most UK employers under the Employers' Liability (Compulsory Insurance) Act 1969. It covers the costs of compensation claims brought by employees who are injured or become ill as a result of their work. The minimum cover required is £5 million, though most policies provide £10 million. Failure to hold a valid policy can result in a daily fine of up to £2,500.
Almost every employer in the UK must hold employers' liability insurance from an authorised insurer. Limited exemptions include companies with no employees other than the owner (where the owner holds at least 50% of the issued share capital), family businesses employing only close family members, and certain public bodies. The minimum insured limit is £5 million per occurrence, but industry standard is £10 million. Employers must display the certificate of insurance (physically or digitally) where employees can read it. The Health and Safety Executive (HSE) enforces compliance and can fine employers £2,500 for each day they are not covered. Policies must also cover former employees who develop diseases with a long latency period, such as asbestosis or mesothelioma, where the exposure occurred during the insured period.