Employers' Liability Insurance: UK Legal Requirements
If you employ staff in the UK, you legally must have Employers' Liability Insurance. Here's what every studio owner needs to know.
The Legal Requirement
UK law (Employers' Liability (Compulsory Insurance) Act 1969) requires you to have at least £5 million of cover if you employ anyone—even part-time, temporary, or casual workers.
You can be fined £2,500 per day if you don't have this insurance. You can also be fined £1,000 if you don't display your certificate or show it to inspectors when asked.
What Does It Cover?
It covers compensation claims if employees are injured or become ill because of their work. For yoga studios, common claims include:
- Teachers injuring themselves demonstrating poses
- Repetitive strain injuries from adjusting students
- Slips on wet floors in changing rooms
- Stress-related claims from heavy teaching schedules
Teachers: Employed vs Self-Employed
If you directly employ teachers (PAYE, set their hours, provide uniform/branding), you must have this insurance.
If teachers are genuinely self-employed (they invoice you, carry their own insurance, work at multiple venues), you don't need Employers' Liability for them—but you should verify they have their own Public Liability cover.
How Much Does It Cost?
For a small studio with 2-3 part-time employees, expect to pay £150-£300 annually. Factors affecting price:
- Number of employees
- Wage bill (payroll size)
- Type of yoga (aerial/supersized risk might cost more)
- Your claims history
It's usually bundled with Public Liability insurance in a 'studio package.'
The Certificate Must Be Displayed
You must display your Employers' Liability certificate where staff can see it—either physically in the studio (staff room) or electronically (shared drive with all staff having access).
If you only display it behind the reception desk where teachers can't access it, you're technically breaking the law.
What About Volunteers?
If you have volunteers (unpaid trainees, work experience students), check your policy. Some insurers automatically cover volunteers; others require you to list them specifically. Don't assume they're covered.
Making a Claim
If a teacher injures themselves:
- Record the incident in your accident book (legally required)
- Notify your insurer immediately—even if you think it's not serious
- Don't admit liability or offer compensation without insurer approval
- Keep records of all communications
Even if a claim seems fraudulent, let your insurer handle it. They have legal teams for this.
