Employers Liability Insurance
Employers Liability Insurance is a legal requirement that protects your business against compensation claims from employees who are injured or become ill as a result of their work.
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Employers Liability Insurance for Contractors
CHAS Insurance arranges employers liability insurance for contractors and construction businesses across the UK. Whether you employ directly or engage labour-only subcontractors on site, we’ll ensure you have the right level of cover in place, legally compliant, competitively priced and structured around how your business operates.
Speak to our team today for a tailored quotation.
Our Simple Three-Step Process
Contact Us
Contact us by completing our online contact form or give us a call.
Answer Questions
You’ll receive a series of questions to answer to give us more information.
We’ll Be In Touch
We’ll contact you within 48 hours to discuss your insurance quote and get set up.
Employers Liability Insurance for Subcontractors
One of the most common compliance gaps we see in construction businesses is employers liability cover that doesn’t properly account for subcontractors. The rules matter here.
A labour-only subcontractor works under your supervision, using your tools, equipment and materials. Under UK law, they are treated as an employee, and that means you are responsible for their health and safety and legally required to hold employers liability insurance for them.
A bona fide subcontractor works independently on a set task, brings their own tools and materials, and operates without your direction. They should hold their own insurance.
In practice, many contractors use a mix of both. We’ll help you understand your obligations and structure your policy accordingly, so you’re not exposed and not over-insured.
Is Employers Liability Insurance a Legal Requirement?
Yes. Employers liability insurance is compulsory for UK businesses as soon as they employ anyone under a contract of service or apprenticeship, with limited exemptions.
Under the Employers Liability (Compulsory Insurance) Act 1969, employers must hold a minimum of £5 million of cover from an authorised insurer. Your Employers Liability Certificate must be displayed or made readily accessible to employees.
For building contractors, the risk is compounded by the nature of the work. Construction is one of the highest-risk sectors in the UK for workplace injury and occupational illness, which makes adequate, properly structured cover even more critical.
What Does Employers Liability Insurance Cover for Contractors?
Employers’ liability insurance covers your legal liability to pay compensation if an employee, or someone treated as an employee for insurance purposes, suffers injury, illness or death as a result of working for you.
This typically includes:
- Injuries sustained on site, including falls, struck-by incidents, crush injuries and lacerations.
- Occupational illness, including conditions caused by prolonged exposure to noise, vibration, dust or hazardous materials.
Claims made after the individual has left your employment, provided the injury or illness arose during the period they worked for you. As occupational disease claims can arise many years later, employers should retain employers’ liability documentation for the long term.
Legal defence costs associated with investigating and responding to a claim, regardless of whether the claim is ultimately successful.
An Example of a Claim
A self-employed contractor was working exclusively for the insured business. While at work he jammed his hand in between a lintel and a metal bar, causing a serious laceration.
What did the insurer cover?
The insurer paid out damages to the contractor under the Employers Liability Insurance cover at a cost of £49,990
What Level of Employers Liability Cover do you Need?
Employer’s Liability claims can be very expensive and as such the standard level of cover of business insurance policies is £10 million.
CHAS Insurance can arrange much higher levels of cover depending on your business size.
Who Counts as an Employee for Employers Liability Purposes?
The legal definition is broad. The HSE defines an employee as someone you employ under a verbal or written contract of service or apprenticeship, regardless of what you call them or their tax status.
In practical terms, for building contractors this includes:
- Full-time and part-time directly employed staff
- Temporary and casual workers, including those brought in for a single project
- Apprentices and trainees
- Labour-only subcontractors working under your direction and using your equipment
- Volunteers and work experience placements you direct
Supporting Accredited Contractors
We work regularly with contractors holding CHAS, Constructionline, SafeContractor, SMAS Worksafe and Gas Safe Register accreditations. These schemes have specific insurance requirements, and we understand the documentation and compliance standards needed to maintain them.
Speak to CHAS Insurance today for a competitive employers liability insurance quotation.
We work with contractors accredited by the following organisations…
