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What is employers' liability insurance? 

Employers’ liability insurance (often referred to as EL) is for all firms employing staff. For limited company contractors, it is there to protect any employees that work for you. Employers' liability insurance is the only insurance required by law for businesses employing staff, and is applicable even if you employ your partner or spouse for clerical work (provided that you’re paying over the PAYE threshold).

Furthermore, if you have a substitution clause included in your contract - which is a – then employers’ liability cover will be there to protect you if you have to use this clause.

Even if neither of these cases apply to you, and you don’t have any employees of your own, it's still very likely that your client will require you to hold employers' liability insurance just in case. It’s also good to be future-proofed for if­­­ you do ever need to expand your workforce.

What level of employers' liability cover is available?

By law, an employers' liability policy is required to carry a minimum indemnity limit of £5 million for any one claim. However, following the industry standard, Kingsbridge issues EL insurance with a £10 million limit to make sure your risk is fully covered

It's worth mentioning that although Kingsbridge automatically includes employers' liability insurance as part of the core professional indemnity and public liability package, it has little impact on the overall price of the policy you pay. In fact, having this additional cover proves to be great value for money, and added peace of mind can’t be underestimated when you’re self-employed.

You can see exactly what you're covered for with your employers' liability insurance over on our What's Included page.

Do you have any example employers' liability claims?

The spouse of a contractor is working in their home office when a light fitting falls and injures them. As they would be considered an employee under the terms of the employers' liability insurance, any claim would be covered.

An IT contractor is unwell and unable to work, so they send in a substitute in their place, as agreed by the client and as per the substitution clause in their contract. Whilst working, the substitute contractor trips over a wire that was left out by the original contractor. The substitute contractor makes a claim, which is covered by the employers’ liability insurance.

How do I purchase a Kingsbridge employers' liability policy?

Employers’ liability is available as part of our core contractor insurance policy. We’ve built our policy this way to make sure you’re fully covered from the word go, and to make sure you have no roadblocks when it comes to winning and starting new contracts.

  • What is employers' liability insurance?
  • Protection against claims from employees for legal liability in respect of injury or disease which arise in the course of their work and for which you are responsible. It provides cover if you employ a spouse or close family member in an administrative or clerical role. It would also cover you if you have a substitution clause in your contract and have to send a substitute in your place. Employers' liability insurance is a compulsory insurance for all employers with limited exceptions in law.
  • Why do I need employers' liability if I do not employ anyone?
  • In addition to the fact that employers' liability may be a legal requirement for you to hold, most clients will include this insurance as a standard contractual obligation so cover has been included to help comply with these requirements. The Kingsbridge package of insurance will cover you if you employ a spouse or close family member in an administrative or clerical role, and also if you have to utilise the substitution clause of your contract.
  • Is employers’ liability a legal requirement?
  • If you employ one or more employees for your business, then employers liability is a legal requirement. This could be an employee that is completing administration for you, or another contractor that you have hired under the substitution clause of your contact.