Taking On an Apprentice? Do You Need Employers’ Liability Insurance?

• Do I need employers’ liability insurance for an apprentice?
  Yes. If you directly employ an apprentice, you will normally need employers’ liability insurance, even if they are your only employee. Being an apprentice does not itself create an exemption.

• Does my existing employers’ liability insurance cover an apprentice?
  Your policy may already include apprentices, but check with your FSB Insurance Service broker or insurer before they start. Explain what work they will do and confirm whether your policy details need updating.

• What does employers’ liability insurance cover if an apprentice is injured?
  It is designed to help meet compensation claims and associated legal costs if an apprentice suffers a work-related injury or illness for which your business is legally liable. An injury does not automatically result in a payout; cover depends on the circumstances and policy terms.

• How much does employers’ liability insurance cost for an apprentice?
  There is no single price. Insurers consider factors including your business activities, the number of people you employ and your claims history. Ask your FSB Insurance Service broker or insurer whether taking on an apprentice will change your premium.

• How much employers’ liability cover do I need?
  Where employers’ liability insurance is legally required, you must have at least £5 million of cover. ABI says most policies provide at least £10 million. Check your policy limit and any contractual requirements your business must meet.

• What happens if I employ an apprentice without employers’ liability insurance?
  You can be fined up to £2,500 for every day you do not have appropriate cover. You could also have to meet compensation and legal costs yourself if a claim arises.

“Taking on an apprentice is a smart way to bring fresh energy, new skills, and long-term potential into your small business.”

Hiring your first apprentice is a significant step for a small business. You might need help with a growing workload, want to pass on specialist skills or be thinking about how to build your team for the future. An apprenticeship can give someone a route into your industry while allowing them to learn how your business works.

There is plenty to arrange before they arrive. Finding a training provider, agreeing pay and working hours, planning supervision and making time for learning all need attention. If you have worked alone until now, you will also be taking on the responsibilities of being an employer. That includes checking your insurance.

“You should check with your insurer to make sure your employers’ liability policy covers everyone who works with your business.”

The government’s announcement on 19 October 2026 gives this question fresh relevance. Its Industrial Strategy Jobs Plans include commitments to 22,400 new under-25 apprenticeships a year in professional and business services, alongside 40,000 construction placements annually.

The announcement also includes plans for a Construction Apprenticeship Network intended to help smaller firms recruit and support apprentices. These are commitments and planned opportunities, rather than numbers already delivered.

For a small business considering taking part, the opportunity comes with a practical question: if someone joins your business as an apprentice, do you need employers’ liability insurance?

In most cases, if you directly employ them, the answer is yes. An apprentice’s training status does not, by itself, exempt your business from the requirement. That applies even if they are your first and only employee. Limited exemptions exist, so it is important to understand how the rules apply to your business rather than make assumptions based on its size.

Why does an apprentice count for employers’ liability insurance?

“You are only required by law to have employers’ liability insurance for people who you employ under a contract of service or apprenticeship.”

An apprenticeship combines work with training. Although your apprentice may spend some of their time learning away from your premises, they can still be your employee.

The fact that they are gaining a qualification or need more supervision does not remove your responsibilities towards them.

HSE’s guide to employers’ liability insurance expressly includes people employed under a contract of apprenticeship. This gives small employers a clear starting point: employing an apprentice should prompt the same consideration of employers’ liability insurance as taking on another employee.

Consider a self-employed plumber who has always worked alone and decides to recruit an apprentice. The apprentice will learn alongside them, helping with work as their skills develop.

From the owner’s point of view, this might feel like passing on a trade rather than building a workforce. But directly employing that person changes the business’s position. Insurance arranged when the plumber worked alone needs reviewing before the apprentice starts.

The same question can arise in an office. An accountancy practice, design studio or consultancy might recruit an apprentice whose work is mainly desk-based. The setting is different, but the need to consider employers’ liability does not depend simply on whether the work looks physically dangerous. HSE’s guidance concerns liability for work-related injury or disease across employment.

Some arrangements involve an employer that is another organisation. HSE explains that when an apprenticeship training agency supplies an apprentice to a host business, the agency employs the apprentice. The agency and host should work together to control risks. If you are using this kind of arrangement, establish who employs the apprentice and discuss the insurance arrangements rather than assuming everyone has the same responsibilities.

What is employers’ liability insurance designed to cover?

Employers’ liability insurance is designed to help meet compensation claims if an employee suffers an injury or illness because of their work and the employer is legally liable. The Association of British Insurers explains that it covers compensation costs and associated legal fees, subject to the policy terms.

For an apprentice, a claim could arise from the work they carry out while learning. For example, an apprentice might allege that an injury resulted from unsuitable equipment or inadequate instruction. Whether a particular claim is covered will depend on the circumstances and the policy.

“Employers have the primary responsibility for the health and safety of the apprentice and should be managing any significant risks.”

Insurance also sits alongside your responsibility to manage workplace risks. HSE says employers have the primary responsibility for an apprentice’s health and safety. A training provider’s involvement does not transfer that responsibility away from the employer. Training, suitable supervision and clear instructions therefore need to be part of your preparations too.

If you already have public liability insurance, it is important to understand the distinction.

• Public liability deals with certain claims from members of the public or other businesses.

• Employers’ liability addresses claims from employees for work-related injury or illness. Having public liability cover does not remove the need for employers’ liability where it is legally required.

For a business taking on its first apprentice, the sensible starting point is to check its insurance arrangements before the employment begins. For an existing employer, it is to confirm how the apprentice and the work they will do fit within the current policy.

Watch: Could an apprenticeship work for your business?

FSB’s webinar explores common apprenticeship myths and the benefits of hiring an apprentice or upskilling existing staff.

Recorded June 2024. Funding and employment information may have changed since recording.

Taking on an apprentice? Speak to us before they start

Whether you are becoming an employer for the first time or adding to your team, it is worth checking how your insurance arrangements apply to your apprentice and the work they will do.

As an FSB member, you already have access to insurance support through your membership, at no additional cost. If you haven’t already, register for free to unlock your access, or call 020 3883 7976 to speak to the FSB Insurance Service team.

Access to support is included in your membership. Any insurance you arrange is paid for separately.

This content is for general information only and is not intended to provide advice or a personal recommendation. Insurance cover is subject to the terms, conditions and exclusions of the policy. Always consider your individual circumstances and seek professional advice before arranging insurance.