Employers’ Liability Insurance for PA Employers

What is Employers’ Liability Insurance?

Employers’ liability insurance covers the cost of compensating employees who are injured at work or become ill through their work. If you are a PA employer, this would include people you employ as your Personal Assistant.

If I employ a PA do I need to have Employers’ Liability Insurance?

If you are an employer of a Personal Assistant you are legally obliged to have employers’ liability insurance. You can be fined up to £2,500 for every day you do not have appropriate insurance.

Employers’ liability insurance usually covers:

  • the cost of compensation
  • any associated legal fees.

However, you need to check to see exactly what any policy covers.

Buying employers’ liability insurance

You can buy employers’ liability insurance directly from an insurer or from a specialist broker through the British Insurance Brokers’ Association (BIBA) (see the resource at the end).

There are often different levels of insurance cover available. A typical insurance policy will cost anywhere between £59 a year to £95 a year. However, there is a lot of variation in what is covered by different policies and this will affect the final cost of the insurance. You are obliged to have cover for compensation of at least £5 million, but most policies offer cover for at least £10 million.

A typical policy might provide cover for:

  • Employer Liability
  • Public liability
  • Legal expenses
  • Personal accidents
  • Redundancy cover
  • Financial loss

If you want to discuss what level of Insurance might be right for you, you can contact your local Independent SDS Information and Support Service, or local payroll provider. You can find their details by doing a Search in the Find Help tool in this Handbook.


Some businesses and PA Employers are not required to have employers’ liability insurance, including:

  • PA employers with no employees
  • PA employers where the people employed are only family members.

To check if your business is exempt from employers liability insurance see the Health and Safety Executive (HSE) website (see resource below).

What insurance does my PA need if they’re self-employed?

If your PA is self-employed (they pay their own tax and national insurance) and if you are contracting with them for their support, you do not need to have Employers’ Liability Insurance. However, you may still wish to be covered for Public Liability. Public Liability Insurance provides cover against accidental injury and property damage claims.

The cost of Insurance for self-employed PAs can also vary, depending on the level of cover needed. Costs can range between £75 – £115 a year with a policy typically providing cover for:

  • Public Liability
  • Personal Accident
  • Personal Possessions
  • Legal Expenses

If a PA Employee claims for injury or illness

If you are a Personal Assistant and have suffered an injury at work or become ill as a result of your job, you should speak to your employer first. They will contact their insurer to ask about making a claim.

What happens if I need to make a claim and my employer stops being a PA employer?

It is possible that your Employer has stopped employing people to provide the support they need, because:

  • they have changed their SDS Option and no longer receive a direct payment under Option 1
  • are planning or have moved into residential care
  • are no longer eligible for funding from their Local Authority.

If this is the case, you may still be able to make a claim for compensation directly through your ex-employer’s insurer. You can trace your former employer’s insurance provider through the Employers’ Liability Tracing Office (ELTO) (see resource below).

Next steps

Find more information by looking at the resources below.

Part of
Last Updated
18 May 2023
First Published
15 May 2023
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The PA Employer Pathway

Explore the path to becoming a PA Employer. This is broken down into 7 easy steps.

Introduction to Employer Responsibilities

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PA Employers Employment Responsibilities

This outlines the types of responsibilities that PA Employers have towards their employees, covering the recruitment and on-going support of PAs, as well as the administration required as an employer.

The Law: Things You Must Do

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Training for PA Employers and PAs

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The Role and Responsibilities of a PA (for PA Employers)

The Personal Assistant (PA) role involves much more than personal care. There are many potential roles and responsibilities for a PA which should be specified prior to recruitment.

Personal Outcomes and PA Employers

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Protecting Vulnerable Groups (PVG): For PA Employers

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The Role of Local Authorities (Councils)

Local Authorities have an important role in making sure that SDS works well and PA Employers have the information and support they need to meet their needs.

The Role of Information and Support Organisations

Local Independent Support Organisations provide free information and guidance at any stage of the SDS process, often from people who have experience of being a PA employer. Using a local organisation like this can help employers understand the process, prepare for their next steps and access services that make being a PA employer easier.

PA Employment Status

Learn about the PA's employment status and why it is important to understand the basis of the relationship with the paid worker.

Self-Employed PAs

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The Recruitment Process

When a PA Employer decides to recruit a Personal Assistant, there are a number of things they need to think about and plan for. So for example, it will be important to have a clear job written description for the PA, a plan to advertise the job and a plan to cover the interviewing of potential PAs. It is important that the expectations under employment law are followed during the recruitment process.

Equality and Diversity Considerations

PA Employers need to treat their PAs fairly and not to discriminate against them on the basis of a personal or 'Protected Characteristic', such as their gender, age, sexuality, ethnicity or martial status.

Budget Considerations

A closer look at what costs a budget needs to cover when employing staff, like the basic rate of pay, and how to allow for costs that might or might not happen

Introduction to Health and Safety

Working in a safe way is a legal requirement and an employer is responsible for the health and safety of their employees in the workplace which could be your home. The main areas to be aware of are listed here.

PAs Role in Helping to Administer Medication

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Employers’ Liability Insurance for PA Employers

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Pensions and Auto-Enrolment (Workplace Pensions)

Automatic enrolment was introduced in stages from 2012. Every employer with at least one member of staff now has a responsibility for putting those who meet certain criteria into a workplace pension scheme and for contributing towards it. This includes those who employ a PA(s).