{"id":10602,"date":"2026-07-01T12:15:45","date_gmt":"2026-07-01T11:15:45","guid":{"rendered":"https:\/\/www.policybee.co.uk\/blog\/?p=10602"},"modified":"2026-07-07T15:00:51","modified_gmt":"2026-07-07T14:00:51","slug":"do-i-need-employers-liability-insurance-for-freelancers","status":"publish","type":"post","link":"https:\/\/www.policybee.co.uk\/blog\/do-i-need-employers-liability-insurance-for-freelancers","title":{"rendered":"Do I need employers’ liability insurance for freelancers?"},"content":{"rendered":"
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\"A<\/figure>\n<\/div>\n\n\n

Everyone needs a little extra help from time to time. Which brings us to a question we get asked a lot: do I need employers’ liability (EL) insurance<\/a> for freelancers? <\/p>\n\n\n\n

Good question, but let\u2019s get some context first. Because where employers’ liability insurance is concerned, one size doesn’t always fit all.<\/p>\n\n\n\n


What is employers’ liability insurance?<\/strong> <\/strong><\/h2>\n\n\n\n

If a member of staff is injured or ill, and they say it’s because of the work they do for you, they can make a claim against you. <\/p>\n\n\n\n

Employers\u2019 liability insurance covers your legal costs for dealing with the claim. And pays any compensation you might owe, if you\u2019re at fault. <\/p>\n\n\n\n

And there’s more. Because if you have employees, EL isn’t just a nice to have but a legal requirement. As soon as you become an employer, you need to have cover in place for at least \u00a35 million. Oh, and it needs to be from an authorised insurer \u2013 you can find this out by looking the Financial Conduct Authority\u2019s (FCA) register<\/a>. <\/p>\n\n\n\n

The Health and Safety Executive (HSE)<\/a> can hand out a \u00a32,500 fine for each day you’re without cover. That’s on top of the \u00a31,000 fine for not displaying a valid certificate where your employees can see it. Like at your workplace or on your website. Ouch.<\/p>\n\n\n\n

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But what about employers’ liability for freelancers? <\/strong><\/h2>\n\n\n\n

This is where it gets tricky. <\/p>\n\n\n\n

A genuine freelancer usually won\u2019t count as your employee, so won\u2019t need EL cover. But the freelancer label isn\u2019t what decides it. What matters is how<\/strong> they work for you. <\/p>\n\n\n\n

This is broken down by the Association of British Insurers (ABI)<\/a>. They list what makes someone an employee, regardless of their label. <\/p>\n\n\n\n

The key thing for freelancers is who has control over where they work from, the hours they work, and the conditions they work in. <\/p>\n\n\n\n

Genuine freelancers decide <\/strong>where they work from and the hours they\u2019ll be working. They also use their own equipment. That means you probably don\u2019t need EL for them. <\/p>\n\n\n\n

If you require the freelancer works from a specific location, only works during certain hours, or uses your equipment, they probably count as an employee in the eyes of the law.  <\/p>\n\n\n\n

That means you\u2019d need EL cover for them. <\/p>\n\n\n\n

If you\u2019re unsure, it\u2019s worth speaking to your broker or insurer. They can walk you through it and let you know whether you need it. <\/p>\n\n\n\n

The last thing you want is to be caught out and end up having to pay a hefty fine. <\/p>\n\n\n\n

<\/p>\n\n\n\n

Any other caveats?<\/strong><\/h2>\n\n\n\n

The rules we\u2019ve talked about only apply for freelancers you employ who are based in England, Scotland, and Wales. <\/p>\n\n\n\n

Northern Ireland has very similar rules. If you work with freelancers there, have a read of the Health and Safety Executive for Northern Ireland\u2019s (HSENI) guidance<\/a>. <\/p>\n\n\n\n

If you work with a freelancer who\u2019s based outside the UK, you don\u2019t need to worry about them when it comes to meeting your legal obligations. <\/p>\n\n\n\n

Even then, it\u2019s still worth thinking about whether you need cover for them. <\/p>\n\n\n\n

We also mentioned that the legal minimum amount of cover you need is \u00a35 million. While this is true, most insurers offer a minimum of \u00a310 million.  <\/p>\n\n\n\n

This is due to how expensive EL claims can be. Insurers want to make sure you aren\u2019t underinsured<\/a> in the event of a particularly tricky claim. <\/p>\n\n\n\n

So, don\u2019t be worried if you notice every insurer providing quotes with \u00a310 million of cover. <\/p>\n\n\n\n

<\/p>\n\n\n\n

A little extra help <\/strong><\/h2>\n\n\n\n

If you’re still not sure you need employers’ liability for freelancers, try this straight-from-the-horse’s-mouth guidance. <\/p>\n\n\n\n

Our own employers’ liability insurer uses the following definition of ’employee’: <\/p>\n\n\n\n

Any person working for you in connection with your business who is: <\/p>\n\n\n\n