Employers' liability insurance

You need employers' liability insurance unless you are exempt from the Employers' Liability (Compulsory Insurance) Act. The following employers are exempt:

• Most public organisations including government departments and agencies, local authorities, police authorities and nationalised industries
• Health service bodies, including National Health Service trusts, health authorities, primary care trusts and Scottish Health Boards
• Some other organisations which are financed through public funds, such as passenger transport executives and magistrates' courts committees
• Family businesses, ie if your employees are closely related to you (as husband, wife, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister). However, this exemption does not apply to family businesses which are incorporated as limited companies
• Companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company