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The Employers’ Liability (Compulsory Insurance) Act 1969 requires most employers to have insurance that covers them if an employee is injured or made ill at work and claims compensation. It makes sure money is there to pay valid claims, even if the business could not otherwise afford them.
Who needs it?
Almost every employer with at least one employee, including part-time and temporary staff, needs employers’ liability insurance. Some are exempt, including most public bodies, some family businesses where all employees are closely related to the owner and the business is not a limited company, and limited companies whose only employee is the owner who holds at least half the shares. Check the current gov.uk guidance if you think you may be exempt.
The key requirements
| Requirement | Detail |
|---|---|
| Minimum cover | At least 5 million pounds per claim, from an authorised insurer. Most policies offer 10 million. |
| Certificate | The insurer issues a certificate, which must be made available to employees. |
| Display | Display it where employees can easily read it, or make it available electronically, as long as they know where to find it. |
| Penalty for no insurance | Up to 2,500 pounds for every day without proper cover. |
| Penalty for not displaying | Up to 1,000 pounds. |
Who enforces it?
HSE enforces the Act. Inspectors can ask to see the certificate during a visit.
Employers’ liability or public liability?
Employers’ liability covers claims from employees. Public liability covers claims from members of the public and clients, and is not compulsory by law, although many clients require it. Insurance is not a substitute for managing risk: a good record of risk assessment and training can also make cover easier and cheaper to get.
Keeping old certificates
Since 2008 there has been no legal duty to keep old certificates for 40 years, but it is still sensible to keep records of past insurers, because claims for diseases such as asbestos-related illness can be made decades later.
The ACoP and official guidance
| Publication | Status | What it covers |
|---|---|---|
| No ACoP | n/a | There is no ACoP. HSE publishes a short guide, Employers’ liability (Compulsory Insurance) Act 1969: A brief guide for employers, and gov.uk explains the rules. |
An Approved Code of Practice (ACoP) has special legal status under section 16 of the Health and Safety at Work Act. If you are prosecuted and did not follow it, you must show that you met the law in some other way that was just as good. Guidance on Regulations has no special legal status, but inspectors refer to it and following it is normally enough to comply. Our guide to UK health and safety legislation lists every law and its ACoP or guidance in one place.
Training that helps
Insurers look for evidence that risks are managed. IOSH Managing Safely gives managers the basics, and the NEBOSH National General Certificate covers the legal framework, including civil liability and insurance. Our guide to the health and safety law poster covers the other document employers must display.
Frequently asked questions
Is employers’ liability insurance a legal requirement?
Yes, for most employers with one or more employees.
What is the minimum cover for employers’ liability insurance?
5 million pounds, though most policies provide 10 million.
Do I have to display the certificate?
You must make it available to employees, either displayed where they can read it or electronically where they can access it.
What is the fine for not having employers’ liability insurance?
Up to 2,500 pounds for every day you are not properly insured.
Read the source
The Employers’ Liability (Compulsory Insurance) Act 1969 and the Employers’ Liability (Compulsory Insurance) Regulations 1998, as amended in 2008; gov.uk guidance on employers’ liability insurance; and HSE’s brief guide for employers. Facts checked on 7 October 2026.
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