Q&As

What is Employers’ Liability Insurance?

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Produced in partnership with Hannah Laithwaite of Lamb Chambers
Published on LexisPSL on 02/08/2017

The following Insurance & Reinsurance Q&A produced in partnership with Hannah Laithwaite of Lamb Chambers provides comprehensive and up to date legal information covering:

  • What is Employers’ Liability Insurance?
  • Employer carrying on business in Great Britain
  • Approved policy
  • Liability for bodily injury/disease
  • Employees
  • Arising out of and in the course of employment
  • Form

Employers’ Liability (EL) insurance is a form of compulsory liability insurance required by the Employers’ Liability (Compulsory Insurance) Act 1969 (the Act). Section 1 of the Act makes it mandatory for every:

  1. employer carrying on any business in Great Britain

  2. to take out an approved policy

  3. against liability for bodily injury or disease

  4. sustained by his employees, and

  5. arising out of and in the course of their employment in that business in Great Britain

The Act is supplemented by the Employers’ Liability (Compulsory Insurance) Regulations 1998, SI 1998/2573. Although the Act prescribes a minimum level and scope of cover, many EL policies in fact offer wider coverage and limits.

Employer carrying on business in Great Britain

Certain employers are specifically exempted from the Act, mainly governmental and public bodies but also companies with only one employee who owns at least 50% of its shares.

‘Business’ includes a trade or profession. An employer without a place of business in Great Britain is deemed not to carry on business there, although the legislation has been extended to cover workers on offshore installation.

Approved policy

An approved policy is one which does not cont

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