Employers Liability Insurance for Nurseries and Preschools UK – InsureWise UK

Employers Liability Insurance for Nurseries and Preschools UK

Answer Target: Nurseries and preschools must hold employers’ liability insurance to cover all staff, including full-time early years practitioners, part-time assistants, apprentices, and volunteer helpers. Due to the physical demands of childcare, having this coverage is both a strict legal requirement and a critical safety net against compensation claims.

What Is It and Who Needs It?

Operating a childcare facility involves significant physical work—lifting children, moving equipment, and cleaning. Under the Employers’ Liability (Compulsory Insurance) Act 1969, any nursery employing staff must have active cover. The industry norm is the £10M standard cover, which pays for legal defence and compensation if a staff member is injured or falls ill due to employer negligence.

If Ofsted or the HSE discover you are operating a nursery without this insurance, you will face a £2,500 daily fine, and it will severely impact your registration and operational status.

Key Factors

Childcare environments present unique risks that insurers evaluate:

  1. Moving and Handling Injuries: Back injuries from lifting children are the most common claims in nurseries. Insurers want to see robust manual handling training.
  2. Apprentices and Students: Nurseries rely heavily on early years apprentices. Legally, they are treated exactly like full-time employees and must be covered.
  3. Infection Control: While harder to prove negligence, staff contracting illnesses due to poor hygiene protocols can theoretically result in claims.
  4. RIDDOR and Ofsted: Serious staff injuries must be reported via RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations). Simultaneous reporting to Ofsted may also be required depending on the incident.

Step-by-Step Guide to Securing Cover

  1. Count Your Entire Roster: Include everyone from the nursery manager to the weekend cleaner, including temporary agency cover.
  2. Update HMRC Details: Ensure your Employee Reference Number (ERN) is active, as insurers require this to log your policy on the national database.
  3. Train Your Staff: Implement and document strict manual handling and slip/trip hazard training.
  4. Display the Certificate: Your certificate of insurance must be displayed in a staff area, like the break room or office.

Common Mistakes

  • Thinking Public Liability Covers Staff: Public Liability covers the children and visiting parents. It absolutely does NOT cover your employees.
  • Forgetting Work Experience Students: Assuming a local college’s insurance covers a 16-year-old on placement. Once they are under your direction, you need employers’ liability cover.

Real-World Scenario

A bustling preschool in Manchester hired a new apprentice. During a messy play session, water was spilled on the linoleum floor. The manager saw it but forgot to put out a wet floor sign. The apprentice slipped, suffering a severe concussion and a fractured collarbone. Because the nursery had an active employers’ liability policy, the insurer covered the £25,000 compensation claim and managed the legal proceedings. The nursery correctly filed a RIDDOR report. Had they been uninsured, the owners would have faced personal bankruptcy and a £2,500 daily fine from the HSE.

Frequently Asked Questions

Does EL cover the children? No. Injuries to children are covered by your Public Liability insurance. Employers’ Liability is strictly for your staff.

Do childminders working alone need it? If you are a sole-trader childminder working alone with no assistants, you do not need employers’ liability insurance. You only need it if you hire an assistant.

What is the fine for having no cover? The HSE can fine your nursery up to £2,500 for every single day you operate without a valid policy.

Key Takeaways

  • All nursery staff, apprentices, and volunteers must be covered.
  • Manual handling is a primary risk; document your training thoroughly.
  • Do not confuse Public Liability (for the children) with Employers’ Liability (for the staff).

Author: Claire Ashford, Cert CII. Claire is a specialized commercial insurance compliance expert dedicated to helping UK businesses navigate statutory requirements safely.