Employers' liability insurance: why casual labour can still create a serious cover problem

HSE's 19 June 2026 prosecution notice about an uninsured business owner is a clear reminder that employment risk is not limited to large payrolls. A person brought in to help with a job can still create legal duties, injury exposure and insurance questions, even where the working arrangement feels informal.

The case involved a worker who fell through a fragile roof while replacing skylights. HSE said the business owner had no employers' liability compulsory insurance at the time of the incident and had instructed the work without suitable control measures. The facts are construction-led, but the lesson is wider for SMEs, yards, depots, couriers and transport businesses that use casual help, subcontractors or temporary labour.

 

What this means for SMEs and operators

In most cases, employers are legally required to hold employers' liability compulsory insurance. There are exceptions, so the right answer depends on the structure of the business and who is doing the work. Public liability is not a substitute for employers' liability, and personal accident cover is a different type of protection again.

This is where businesses can get caught out. Someone may be described as self-employed, a mate helping out, a temporary worker, a subcontractor or a trial worker. Those labels do not settle every insurance or legal question. The working relationship, control over the task, payment arrangements and the nature of the work all matter.

For transport businesses, the same issue can appear around loading, yard movements, vehicle cleaning, minor maintenance, warehouse work, site deliveries and occasional labour on a contract. If someone is injured, the paperwork and the reality of the working arrangement will both be tested.

 

Where cover gets tested

At renewal, it is easy to focus on vehicles, turnover and claims history. Labour arrangements can be treated as admin. In a claim, they become central. Insurers may ask who was employed, what work they were doing, whether the work was declared, what safety controls were in place and whether the correct liability cover applied.

Another common issue is work away from the usual premises. A business may have cover that fits routine operations but not one-off site work, higher-risk manual tasks, work at height, hot work or activities carried out for another party. Cover depends on the policy wording and the circumstances, so it is worth checking before the work starts.

Personal accident cover can also be useful for businesses that want to provide defined benefits after accidental injury, subject to policy terms. It should not be treated as replacing legal liability cover, but it can sit alongside wider people-risk planning.

 

What to check now

• Confirm whether you hold employers' liability cover and where the current certificate is stored.
• List everyone who may work for the business, including casual labour, temporary staff, family help and subcontractors.
• Check whether higher-risk tasks, work away, loading, yard duties or site work match your declared business activities.
• Keep written records of risk assessments, inductions, training and who is responsible for supervising the task.
• Review personal accident arrangements separately, especially where staff or working directors face physical injury risks.

 

Talk to Ratcliffes

If your business uses employees, casual labour or subcontracted help, call Ratcliffes on 01242 544544 to review whether your liability and personal accident arrangements still fit the way you work. A short review can help identify the questions to put right before a claim tests the detail.

 

Sources

• HSE, Uninsured business owner sentenced after man fell through roof, 19 June 2026.
• TheBusinessDesk.com, Uninsured business owner sentenced after man fell through roof during repair work, 19 June 2026.
• HSE, Employers' Liability (Compulsory Insurance) Act 1969: A guide for employers.
• Ratcliffes Insurance Brokers, Products page, accessed June 2026.