Subcontractors · Mandatory · Pre-Construction

Employers Liability Insurance Verification

A verification that a subcontractor holds the legally required employers liability insurance of at least £5m.

Last reviewed: 29 March 2026 — This guide reflects UK law as of this date. EL(CI) Act 1969 remains current with no amendments enacted as of 29 March 2026. Next scheduled review: 29 March 2027.

Legal basis	Employers' Liability (Compulsory Insurance) Act 1969
Legal requirement	Any employer who has employees in the UK must hold EL insurance. 'Employees' includes full-time, part-time, fixed-term, and temporary workers.
Minimum cover	The statutory minimum is £5m per occurrence. Most EL policies provide £10m.
Certificate display	The current EL certificate must be displayed at each place of work or made available electronically.
Penalties	Failure to hold EL insurance: fine of up to £2,500 per day. If an employee is injured and the employer has no EL insurance, the employer is personally liable.

1. EL Insurance — Protecting Workers When Injury Occurs

EL insurance is the statutory safety net for workers. Without EL insurance, the employer is personally liable for potentially unlimited compensation. The PC should treat EL non-compliance as a mobilisation blocker — no certificate, no site access.

The EL(CI) Act 1969 makes it a criminal offence to employ workers without EL insurance. Failure to hold cover attracts a fine of up to £2,500 per day the employer is uninsured. The current EL certificate must be displayed at each place of work or made available to employees electronically. On a construction site, this means the certificate should be accessible in the site office or via a shared digital platform.

The PC's verification role is to confirm that each subcontractor holds valid EL insurance before they mobilise, that the insurer is FCA-authorised, that the cover level meets the statutory minimum of £5 million, and that the certificate covers the full project period. Where EL policies are due to renew during the project, the PC must track the renewal date and request the updated certificate in advance.

A subcontractor without EL insurance is unlawfully employing workers and should not be permitted on site

The penalty for non-compliance is up to £2,500 per day. Treat EL verification as a non-negotiable mobilisation gate.

2. EL Verification Checklist

The following table sets out the fields that a well-structured EL verification checklist should include.

Field	What to record
Subcontractor legal name	Exactly matches certificate? Y/N
Insurer	FCA-authorised insurer? Y/N. Name recorded.
Policy number	Recorded for reference.
Period of cover	Covers the project period? Y/N. Expiry date.
Cover level	£[amount] per occurrence. At least £5m? Y/N.
Certificate display	Worker has access to certificate? Y/N
Employees covered	Does the certificate cover all employees on site? Y/N
Renewal reminder	Set for 2 months before expiry. Y/N
Verified by	Name, role, date.

The completed checklist should be filed alongside a copy of the EL certificate. EL verification should be treated as a hard gate — no subcontractor with employees should be permitted to start work without a verified, current EL certificate on file.

3. Common Mistakes

Permitting subcontractors on site without first confirming EL insurance

EL insurance is a statutory requirement. Allowing a subcontractor to mobilise without a verified EL certificate means they are operating unlawfully and the PC is knowingly permitting it.

Not tracking EL certificate renewal

EL policies renew annually. If the renewal date passes without a new certificate being obtained, there is a gap in statutory cover. The log must flag renewal dates and trigger a request.

Accepting EL certificates from non-FCA-authorised insurers

The insurer must be authorised by the Financial Conduct Authority. A certificate from an unauthorised insurer may not provide valid cover. The FCA register can be checked online to confirm authorisation status.

Assuming self-employed workers don't need EL coverage

Employment status in construction is complex. Many workers described as 'self-employed' are employees in law. If in doubt, EL insurance should be required.

Not following up when EL certificate cannot be provided

A subcontractor who cannot provide an EL certificate should not be on site. Failure to follow up creates ongoing non-compliance and exposes the PC to enforcement action. The PC should escalate immediately and suspend the subcontractor's site access until the certificate is provided.

4. Frequently Asked Questions

Who is exempt from the EL(CI) Act 1969?▾

Employers with no employees (sole traders genuinely working alone); close family members; public sector bodies (Crown bodies are exempt; local authorities are not). The exemptions are narrow and should not be assumed without careful assessment of the specific circumstances.

What happens if a subcontractor’s EL insurer becomes insolvent?▾

The Financial Services Compensation Scheme (FSCS) protects EL policyholders — pays 100% of EL claims.

Does a labour-only subcontractor need EL insurance?▾

Yes — if they have employees. Labour-only subcontractors are a high-risk category for employment status misclassification. The PC should require EL insurance from all labour-only subcontractors unless a genuine sole trader exemption is confirmed.

Can EL and PL insurance be combined in a single policy?▾

Yes — combined policies are common for small construction businesses. Confirm both limits meet requirements separately.

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