Employers' liability insurance

If you employ anyone — even one part-time bar shift a week — you must hold employers' liability insurance covering at least £5 million, from an authorised insurer, from the day that person starts work. The certificate has to be available to any employee who asks and to HSE inspectors on demand — you no longer have to pin it to a wall, but you do have to be able to produce it, on paper or electronically, without delay.

Trading without cover is a criminal offence: HSE can fine you up to £2,500 for every day you are uninsured, and a further fine if you can't produce the certificate when asked. If a member of staff is injured at work and you have no cover, you are personally exposed to the full claim.

Watch out for

• Buying cover for the day you open rather than the day the first person starts training or paid work — induction shifts count.
• Letting cover lapse mid-year on a card that expired, then having a claim fall in the gap.
• Assuming a single director with no other staff is covered by default — check the exemption applies to you before skipping this.

Sources

• GOV.UK — Employers' liability insurance checked 2026-09-02
• HSE — Employers’ Liability (Compulsory Insurance) Act: a brief guide checked 2026-09-02
• BIBA — Find insurance with a trusted broker checked 2026-09-02

See also

• Build your commercial insurance package
• Put up everything you're legally required to display
• Insurance renewals— this becomes an ongoing job once you’re open →