Employers Liability Insurance

Covers your defence costs and legal liability to pay damages to your employees who suffer a personal injury at, or because of, work.

Why would I need Employers Liability Insurance?

No matter how hard you work to enforce health and safety rules, no workplace is without its share of risks. Employer's Liability cover protects you and your business if an employee is injured at or because of work. 


What does this mean for your industry?

What's covered?

  • Damages awarded against you as a result of employees being injured
  • Defence costs as they're incurred

What's not covered?

  • Injury for which the Accident Compensation Act is providing compensation
  • Workers hired to perform tasks outside of your normal activities
  • Asbestos inhalation, exposure and/or clean-up
  • Personal injury caused by building defects, mould or bacteria
  • Deliberate or willful non-compliance with any Act or HSE notice
  • Employment contract disputes
  • Injuries suffered before AA Small Business Insurance insured you

These lists highlight some of the inclusions and exclusions in this policy. For full details of all inclusions and exclusions, see the policy document.

Employers Liability Insurance in action

A worker with an injured hand crouched beside a trailer


Pet Groomer

While taking the trailer off a work vehicle, one of Jamie's groomers suffered a crushed hand with several broken bones. After returning to work the worker started suffering panic attacks around the trailer. The psychological stress meant he was forced to resign, and he brought a claim against the business. AA Small Business worked with Jamie to successfully defend the claim in court, and his Employer's Liability Insurance covered the legal costs.

A person speaking to a judge in court



David's young intern became stressed and unwell because of a very high workload. Unsure how to respond, David didn't take appropriate steps to protect his employee. The employee brought a claim for compensation for personal injury, and was awarded damages. Fortunately for David, both the damages and his legal defence costs were covered by Employer's Liability Insurance. If David had deliberately ignored health and safety laws, his claim would not have been paid.

A person sitting on a hospital bed


Streaming Specialist

Several of Brooke's employees became sick with heat sensitivity. The cause was identified as excessive air conditioning in their workplace, and the employee who was worst affected brought a lawsuit against Brooke, claiming for personal injury due to unhealthy conditions. Employer's Liability Insurance helped Brooke defend the case.

These fictional scenarios were created to illustrate the benefits of Employers Liability Insurance. All claims are subject to the terms and conditions in the policy document.

Let's get things sorted

Speak to a Small Business Insurance Consultant

Call us on 0800 500 231