Employers' Liability Insurance Calculator
Estimate employers' liability insurance premiums by industry and annual wages. Legal requirement for UK businesses.
Source: HSE – Employers' liability compulsory insurance guide
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Estimated Annual Premium
£525.00
£43.75/month · £105.00/employee
Rate
£3.5/£1K wages
Min Cover Required
£5M
Per Employee
£105.00
Employers' Liability Insurance is a legal requirement for most UK businesses with employees. Minimum cover: £5 million. Fine for non-compliance: up to £2,500 per day. Rates vary by industry risk and claims history.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Employers' Liability (EL) insurance is a legal requirement for virtually all UK businesses with at least one employee, under the Employers' Liability (Compulsory Insurance) Act 1969. It covers compensation claims from employees injured or made ill through their work. The minimum required cover is £5 million, though most policies provide £10 million. Fines for non-compliance reach £2,500 per day.
Premiums are set as a percentage of annual payroll, adjusted by sector risk. Low-risk sectors (professional services, office work) typically pay 0.3–0.8% of payroll. Medium-risk sectors (light manufacturing, logistics) pay 0.5–1.5%. High-risk industries (construction, demolition, chemical processing) pay 1.0–3.0% or more. A clean claims history earns significant discounts.
This calculator provides indicative estimates only. Actual premiums are underwritten individually and depend on full disclosure of activities, employee roles, claims history and risk management measures in place.
Who qualifies for Carer's Allowance? Pay £83.30/week (2026/27) to anyone aged 16+ who spends 35+ hours/week caring for someone receiving a qualifying disability benefit: PIP Daily Living component (either rate), Attendance Allowance, DLA care component at middle or highest rate, Armed Forces Independence Payment, or Constant Attendance Allowance. The cared-for person must consent to you claiming. You can't claim if you're in full-time education (21+ hours/week study).
The £196/week earnings limit. You cannot earn more than £196/week (2026/27) after deductions for: income tax, NI, 50% of pension contributions, expenses related to your work (eg childcare while you work). If you earn over £196 in any single week, you lose ALL Carer's Allowance for that week — no taper. This is one of the harshest cliff edges in UK benefits and traps many carers in poverty. Always check before taking on extra hours.
How Carer's Allowance interacts with State Pension. Pre-State Pension age: you receive £83.30/week. State Pension age: if your State Pension is £83.30+/week, you cannot claim Carer's Allowance (it's a 'overlapping benefit'). However, you can be 'underlying entitled' — getting no cash but qualifying for the Carer Element of Universal Credit (£198.31/month if under State Pension age) or higher Pension Credit. Always apply for Carer's Allowance even if State Pension wipes out the cash payment.
Carer's NI credits — crucial for State Pension. Receiving Carer's Allowance entitles you to Class 1 National Insurance credits — counting toward your State Pension qualifying years. Each year of CA = ~£328/year extra State Pension for life from age 67. If you don't qualify for CA (eg cared-for person's benefits insufficient), Carer's Credit gives the same NI credits — apply separately via gov.uk/carers-credit. Many carers miss this and end up with reduced State Pensions despite years of unpaid caring.
Example: 10-employee professional services firm, £350,000 wage bill
- Risk rate for professional services: 0.4% of payroll
- Base premium: £350,000 × 0.004 = £1,400/year
- Clean claims history discount (15%): −£210
- Estimated annual premium: £1,190
Source: HSE – Employers' liability compulsory insurance guide
Frequently Asked Questions
- Is employers' liability insurance compulsory?
- Yes. Under the Employers' Liability (Compulsory Insurance) Act 1969, virtually all UK businesses with at least one employee must hold EL insurance with a minimum cover of £5 million. Exemptions include family businesses where all employees are close family members, and certain public sector bodies. The fine for non-compliance is up to £2,500 per day.
- What does employers' liability insurance cover?
- EL insurance covers compensation claims from employees (or former employees) who suffer injury, illness or death as a result of their work. This includes injuries from accidents, occupational diseases like repetitive strain injury, asbestos-related illness, and hearing loss from noise exposure. It does not cover third-party claims from customers or members of the public — that requires separate public liability insurance.
- How is the employers' liability premium calculated?
- Premiums are typically expressed as a percentage of your annual wage bill, adjusted for your industry risk classification. A professional services firm might pay 0.3–0.8% of payroll, while a construction business might pay 1.5–3.0%. Your claims history and safety record also affect the rate significantly.