What is Employers’ Liability and why may I need it?
If you have anyone helping you in your business—paid or unpaid—you may need to consider Employers’ Liability Insurance.
Many business owners assume this cover is only for those with full-time staff or formal PAYE employees, but that’s not the case. Whether you’re running a market stall with a friend’s help or a limited company with part-time staff, it’s worth understanding how Employers’ Liability works—and why it might be relevant to you.
What Is Employers’ Liability Insurance?
Employers’ liability insurance protects your business if someone working for you becomes injured or ill as result of their work. It covers the legal fees and any compensation if you’re found liable.
While not legally required in the Republic of Ireland, you do have a legal duty of care to ensure the safety of anyone working for you. Having cover can help safeguard your business from costly claims.
Who Counts as an “Employee”?
This is where many business owners are surprised. Most insurance policies consider the following as “employees”:
- Casual or seasonal workers
- People hired under an agreement (even informally)
- Volunteers, helpers, or work experience participants
- Family members assisting at your stall or event
- Company directors (for limited companies only)
Even if they’re unpaid, if someone is performing work on your behalf, you could be held responsible if they are injured during the course of their work.
Note: Sole traders typically do not need cover for themselves under Employers’ Liability, but anyone helping you may still require it.
“Even if you only use occasional help or have a friend lend a hand, if you’re paying them in any form – even in goods – you may still need cover.”
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👉 Not sure if the person helping you counts as an employee? Read our related blog: I Don’t Have Employees – I Use Helping Hands: Family, Friends
Real-Life Example of a Claim
Imagine a helper at your stall lifts a heavy box without proper manual handling training and injures their back. If they decide to make a claim, and you didn’t have Employers’ Liability cover, you could be personally liable for medical costs and loss of income.
This is why it’s essential to assess the risks in your business, no matter how small or informal it may seem.
Common Risk Areas – Manual Handling
Manual handling is one of the most common causes of workplace injury claims in Ireland. Insurers often highlight industries like construction, food stalls, retail and hospitality as higher-risk, but even a small trading setup can involve lifting and moving stock or equipment.
It’s important to provide basic health and safety training, even if it’s informal, especially for anyone helping at your stall.
The Health and Safety Authority provide useful information on the necessary guidelines employers should follow when training their employees.
🔗 https://www.hsa.ie
Final Thoughts
If you’re unsure whether Employers’ Liability is right for you, consider who helps in your business, how they help, and what risks might arise. If there’s any risk of injury while working for you, having the right cover can offer vital protection and peace of mind.
With thanks to Cross Insurance for their support and expert information in helping us explain Employers’ Liability insurance and its importance. Cross Insurance is regulated by the Central Bank of Ireland.
For IOMST members, Employers’ Liability cover is available as an optional addition to your existing public and product liability policy. If you’d like more information or a quote, feel free to contact us at info@iomst.ie.
For more Guides Help, Support. Get in touch with IOMST and become a member today!
Grainne & Greg