Insurance for employers

In the UK, a range of insurance is available to protect both your business and your employees. In this guide, we outline the main types of insurance you should know about as an employer.

Employers’ liability insurance

Employers’ liability insurance protects you against claims from employees who have suffered an injury or illness related to their work. It usually covers legal costs and compensation payments.

In the UK, you are legally required to have employers’ liability insurance if you employ anyone. 

You must get employers’ liability insurance as soon as you become an employer. Your policy must cover you for at least £5 million and come from an authorised insurer.

You can be fined £2,500 for every day that your business is not properly insured, so make sure that you get a policy in place before you hire any staff. Find more information about employers’ liability insurance on the government website.

Other types of insurance

While employers’ liability insurance is the only insurance you’re legally required to have as an employer, there are other types of insurance you may want to consider for your business. Here are a couple of options you might want to think about:

Public liability insurance

Public liability insurance covers any legal and compensation costs that your business incurs if a member of the public is injured or their property is damaged due to your operations. 

Public liability insurance is not legally required, but it's worth looking into if your business has a physical premises, runs events or has other forms of direct contact with customers.

Professional indemnity insurance

Professional indemnity insurance covers the cost of legal claims arising from errors, omissions or negligence in professional services provided by your business. 

Professional indemnity insurance is not a legal requirement for all businesses. However, there are some regulated professions which need to have a policy in place to be allowed to practice by their professional bodies. These include accountants, architects, solicitors and financial advisers.

Fun fact: We’ve partnered with Hiscox, one of the UK’s leading insurers for small businesses, to give you a 20% discount on your business insurance policy through FreeAgent.