Employer Liability Insurance
Our employer liability insurance calculator estimates the annual premium for employers liability (EL) insurance — a legal requirement for virtually all UK employers. EL insurance covers compensation claims by employees who are injured or become ill as a result of their work.
Employer Liability Insurance Estimator
Estimate your Employer's Liability Insurance (EL) premium. UK law requires EL cover of at least £5 million if you employ staff — even one part-time worker.
Employers Liability: A Legal Requirement
The Employers Liability (Compulsory Insurance) Act 1969 requires all UK employers — including those with just one employee — to hold EL insurance with a minimum cover of £5 million per claim. The current market standard is £10 million per claim. Operating without EL insurance is a criminal offence carrying a fine of up to £2,500 per day. Sole traders with no employees and family companies where all employees are also shareholders are exempt. EL premiums are based on industry risk classification, total annual wage bill, claims history, and risk management practices. Most business insurance packages combine EL with public liability in a single policy — see our Public Liability Calculator for the third-party cover element.
Frequently Asked Questions
EL covers employees. If a contractor is genuinely self-employed (contract for services), your EL does not cover them — they should hold their own public liability insurance. If a contractor is deemed employed by HMRC under IR35, EL cover applies.
You must keep EL certificates for 40 years — because occupational disease claims (asbestos, noise-induced hearing loss) can be brought many decades after exposure.
Yes — work-related stress, anxiety, and mental health conditions caused by workplace conditions are covered by EL. Mental health claims have increased significantly in recent years.
Not automatically — volunteers are not employees. Some EL policies extend to cover volunteers on request. Charities and community organisations with volunteers should specifically request this extension.
Most business insurance packages combine EL and public liability in a single policy — often at a lower combined premium than separate policies, while simplifying administration and avoiding coverage gaps.
Employers’ liability insurance is a legal requirement in the UK for any business that employs staff — including part-time, temporary, or casual workers — with a minimum statutory cover of £5 million. The premium depends on the number of employees, their occupations, and the nature of the business. Higher-risk industries such as construction, manufacturing, and healthcare attract higher premiums. The calculator estimates the annual premium range for your business type and headcount. Note that family businesses where all employees are close relatives are exempt from the compulsory requirement, but cover is still advisable. Fines for operating without employers’ liability insurance are substantial — up to £2,500 per day. Keep the certificate of insurance accessible; employees have the right to see it.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.