The Employers' Liability (Compulsory Insurance) Act 1969 requires all employers to take out insurance in respect of liability to employees for bodily injury or disease sustained during employment in Great Britain. The obligation is imposed regardless of the employer's size or number of employees.

The law was changed with effect from 28th February 2005 to exempt very small companies which employ only their owner from the requirement to have employers’ liability compulsory insurance.

It was further changed with effect from 1st October 2008 to remove the requirement that an employer must keep a copy of the insurance certificate for 40 years.

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Except in so far as regulations may otherwise provide the insurance is not required to cover liability in respect of ".... injury or disease suffered or contracted outside Great Britain" (The Employers' Liability (Compulsory Insurance) Act 1969 s.1(1)).

The Health and Safety Executive (HSE) enforces the 1969 Act and associated Regulations (see Health and Safety at work/Health and Safety Commission & Executive ).

The transatlantic style "claims culture" which appears to be developing in the UK has meant that premiums charged by insurers for employers liability insurance have been rising steeply. The situation has become potentially so serious that the government is carrying out a review of the entire Employer's Liability Compulsory Insurance system.

See also notes at Implied terms in employment contracts/duties of employer and/or at Health and Safety at work/civil liability .