Employers Liability Insurance

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What does Employers Liability cover?

Employers Liability Insurance protects your business from the financial risks of being sued by employees for workplace conditions that cause injury or illness. This includes compensation for injuries, associated medical costs, and legal fees.

In the UK, even hiring just one part-time worker means you’re legally required to have Employers’ Liability Insurance in place. Failing to comply can result in fines of up to £2,500 for each day you’re uninsured.

Why is Employers Liability insurance important?

Looking after your team isn’t optional—it’s vital. While Employers Liability Insurance is a legal requirement for most UK businesses with staff, its importance extends far beyond compliance. It protects your business from the financial consequences of workplace incidents and provides essential reassurance for both employers and employees.

Why It’s Even More Critical in Modern Times

  • Flexible Work Brings New Challenges: With remote and hybrid work now commonplace, ELI helps protect your business even if accidents occur outside traditional workplaces.
  • Increased Focus on Mental Wellbeing: Psychological harm and work-related stress are valid grounds for claims. ELI helps cover legal costs if an employee brings a case.
  • Stricter Health & Safety Regulations: Failing to meet updated workplace safety standards can lead to legal action. ELI is your safety net against such risks.
  • Financial Shield Against Legal Action: Claims can be expensive and damaging—ELI covers court costs, compensation, and settlements to protect your operations.

Employers Liability Insurance for Beauty and Salon Businesses

For beauty and salon businesses, where staff work with chemicals, heat-based tools, and sharp equipment, the risk of accidents and exposure is elevated. ELI ensures you’re protected against these industry-specific hazards.

Your team is your most valuable asset. Employers Liability Insurance is about more than ticking a legal box—it’s about safeguarding your business and supporting your staff in an evolving working world.

What Employers Liability Insurance does not cover

Employers Liability Insurance does not cover claims related to:

  • Unfair dismissal
  • Workplace discrimination or harassment
  • Breach of employment contract

It strictly covers bodily injury and illness caused by workplace conditions or duties. For other employment-related risks, consider Employment Practices Liability Insurance.

Who Needs Employers Liability Insurance?

  • Small businesses with any employees
  • Startups hiring part-time or freelance staff
  • Sole traders who employ others
  • Companies operating in high-risk sectors such as construction, care, or beauty

If someone works for you—whether full-time, part-time, or casually—you likely need Employers Liability Insurance to meet legal obligations and protect your business.

Combining Coverage for Comprehensive Protection

Employers Liability Insurance protects against employee injury claims, but for broader protection, consider pairing it with Public and Products Liability Insurance. This combination ensures you're covered for incidents involving both employees and third parties.

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