Most UK businesses with employees need employers’ liability insurance, although limited exemptions can apply. The question depends on the legal relationship, not only whether someone is called an employee or paid through payroll.
Workers, apprentices, labour-only subcontractors and volunteers may create an exposure where the business controls how and where work is done. Company structures involving only certain close family members or a sole owner-employee can be treated differently, but the facts should be checked carefully.
What does the cover address?
It can respond to legal liability for injury or illness suffered by an employee arising from their work, subject to the policy. It does not replace health-and-safety duties, training, protective equipment or incident reporting.
What records matter?
Keep the current certificate available as required, retain historic certificates, and maintain wage, role and health-and-safety records. Accurate wage roll and activity descriptions are important at renewal.
This is general information, not a legal determination of whether a particular working arrangement falls within an exemption.