How Much Does General Liability Insurance Cost - The average cost of employers liability insurance ranges from around £61 a year for an office worker to £200-600 or more for a UK SME for a trade worker, with premiums increasing with workers compensation and occupational hazard. One of the most expensive types of business insurance.
But while employers' liability insurance may seem expensive, in most cases it is required by law and provides protection against employee injury or sickness claims. Before buying a policy, read our detailed guide to get a feel for the market so you are well informed about the prices in the UK market.
How Much Does General Liability Insurance Cost
Employer's liability insurance in the UK is between £60 and £600 per employee, depending on the hazard of their work. Therefore, the total cost of employers liability depends on your industry and the number of people you employ.
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For example, when insuring an employee who does clerical work for only a low wage of £60, you would, on average, spend about £213 on employer liability insurance for an employee performing duties related to your core business. This is because office work is often very low risk, so administrative staff are less prone to workplace-related accidents or illnesses compared to other workers, especially those with physical duties.
In general, the more employees you have, the higher your employer's liability insurance premium will be. However, each additional employee usually costs less than the previous employees you add to your insurance.
For example, the first worker's insurance costs an average of £213, while the second worker costs an extra £141. When you have 5 employees on the staff, the 3rd, 4th and 5th employees cost an average of around £133, with an additional premium deducted for each.
While employers liability insurance may seem expensive regardless of the size of your business, the cost to a business of workplace injuries and illnesses can be substantial.
Is Business Insurance The Same As Public Liability?
Insurance companies base employers' liability insurance offers based on the type of work you do. The higher your employees' risk of injury or illness, the higher their insurance rates. For example, EL premiums are often higher for a manufacturer than for a feeder. A contractor might pay around £1,000 to cover 5 employees, but a roofer could easily pay £2,000-3,000 for a contractor with 5 employees.
However, these rates will vary depending on many factors, including business structure (for example, self-employed/self-employed, partnership or limited liability company).
Most insurance companies also base their employer's liability insurance rates on your business structure (i.e. sole proprietorship, partnership or limited liability company). Sole proprietors (self-employed) usually pay the lowest for employers' liability insurance - they also pay the lowest for public liability insurance.
For example, the cost of employer liability insurance for a partnership is about 16% more than for a sole proprietorship. A limited liability company (with one director) will typically pay 30% more for employers' liability than a sole proprietorship.
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A new policy is likely to cost you more if employers have had liability claims against you before. Insurers look at the history of claims for individual businesses and your business' managers when calculating premiums, so in some cases, even if their current business doesn't have any claims history, they may be charged more than managers who have filed claims against previous businesses.
Each business will have unique characteristics and risk factors that an insurance company considers when calculating a quote for employers' liability coverage. For example, landscape maintenance companies that cut trees will pay more for employers' liability coverage than businesses that only do onsite residential landscaping.
Additionally, your location may affect your employer's liability insurance premiums. If an insurance company has a history of more EL claims in an area, they are likely to charge more for insurance coverage if you operate there. Also, if you have a B2B company, the size of your business can be a factor, as can the types of clients you work with.
In general, there are many factors that can affect your business insurance rates, but we hope this will help you understand how your insurer calculates your rates, whether you're purchasing employers' liability insurance for the first time or researching costs before renewing.
How Much General Liability Insurance Do I Need?
Fill in a quote here and our commercial insurance search engine partner QuoteZone will connect you to up to 5 insurance providers. You will have the opportunity to create a policy tailored to your needs and ask any questions you may have before signing up.
Alternatively, you can compare prices before you buy using a competitive search engine like Simply Business, or find a BIBA broker using their search tool.
Before signing on the dotted line, make sure an insurer is authorized to offer insurance by checking the Financial Services Register maintained by the Financial Conduct Authority.
Employer liability insurance starts at around £60 per employee and rises to £300-600 or more per employee, depending on how dangerous the job is. Employers' liability costs tend to decrease on a per capita basis as the number of employed personnel increases. This means that the additional workers you bring on board often cost less than previous workers.
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The key to finding cheap employers liability insurance is to get quotes from multiple insurers, which you can do using a comparison engine or by talking to a broker who works with multiple insurance companies. Ready now? Start by filling out a quote form and our QuoteZone commercial insurance search engine partner will connect you to up to 5 insurance providers.
The Employer's Liability (Mandatory Insurance) Regulations 1998 (read the regulation here) set a minimum of £5 million for employers' liability insurance, with an insurance limit for most policies. Businesses that engage in highly hazardous work may need a higher limit, especially if they have a large number of employees. If you have questions about the level of coverage for your business needs, discuss your needs with a qualified insurance provider.
The minimum insurance limit for employers' liability is £5 million - this is required by law in almost all cases.
To calculate the average cost of employers' liability insurance for a small UK company, our study involved putting together hundreds of proposals for basic employers' liability insurance, which includes the statutory £5m mandatory minimum coverage.
How Much Public Liability Insurance Do I Need?
First, we selected some popular small businesses to represent different employee exposure (catering, cleaner, and manufacturer) and then collected proposals for different business structures: sole trader, partnership, and 1-manager limited liability company.
Typically, employers' liability insurance is purchased along with public liability insurance. To determine the average prices for employer liability, we summed up the prices for each scenario (in different business structures, risk levels and number of employees) for the combination of public liability insurance and employer liability insurance, and then subtracted the public liability insurance costs. alone (assuming no employees). This allowed us to find the additional cost of business insurance attributable to employers' liability coverage.
Therefore, the figures in this study, public liability, tools, equipment, legal guarantee, personal accident insurance, etc. It reflects only the primary employer liability coverage, without any coverage for ).
We averaged the 5 cheapest offers we found for each case (eg, self-employed catering company with 2 employees).
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Insurance rates can vary significantly from business to business, from insurer to insurer, and even from day to day, so you may find that the cost of purchasing employers liability insurance is significantly lower or higher than the numbers listed in the study. Use the data presented here for educational purposes only.
The guidance on this site is based on our own analysis and is intended to help you identify and narrow down your options. We do not recommend or tell you which product to buy. Do your own due diligence before entering into any deal. Read our full statement here.
Advertiser disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. is a research and data driven personal finance website. Reviews displayed on this site are based on our own analysis and opinions, focusing on product features and prices, not services. Some offers displayed on this site are from companies from which compensation was received. This compensation may affect how and where offers appear on this site (for example, the order in which they appear). For more information. Advertiser Disclosure. The site cannot control or include all companies or all available products. While we make every effort to keep product information complete and up to date, prices and terms may change after publication, so always check with the provider for details. Consumers should ensure that they do their own due diligence before entering into any deals. Even with effective occupational health and safety procedures, accidents continue to occur. However, if a business is found to be at fault, legal costs and compensation payments can be substantial.
An accident claim, together with the associated costs,
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