You might need employers’ liability insurance as soon as you take on your first member of staff. If you run a limited company and employ anyone, in any capacity, it may be a legal requirement.

The difference between these business insurance policies is where the claim comes from. If it comes from a person from outside your business, you’ll use public liability cover. If they work inside your company, you’ll use employers’ liability insurance.

Before you take out a policy, you might want to learn about making a claim. That’s why we’ve collated real-life claims stories. One case saw a volunteer trip and sustain an injury, which lasted for over a year. Our customer had the right policy in place. This helped to defend them and pay out as required. So, both parties were covered.

You’ll usually be exempt from employers’ liability insurance requirements if: Your business has zero (0) employees Your limited company employs only one person, yourself. And you also own more than half the firm’s share capital You’re a sole trader You run a family business. This means you employ only close relatives. Say, your husband, wife, son or daughter. The family business exemption is not designed for limited companies. To find out more about the rules and what they might mean for you, research can help. Try the:

Yes, employers’ liability insurance is tax deductible. This is because it’s classed as an allowable expense(external link). Keep your payment records. Then, you can list this as a deductible cost when you calculate your profits. This might mean you pay less corporation tax.

The Financial Conduct Authority (FCA)(external link) instructs firms to make their policies searchable. This has applied since 2011. It lets current and former staff check for employers’ liability policies.