Fact sheet 22

Employers Liability Insurance

This type of insurance is a statutory requirement for anybody employing staff irrespective of whether wages/salaries are paid.  All employers have an absolute duty of care to their workers, which explains why this class of insurance is mandatory in the UK.



All Insurers on our panel have become members of the Employers Liability Tracing Office (ELTO).  This is a new requirement from the Financial Services Authority (FSA) which requires Insurers to submit details of all new and renewed Employers Liability Insurance policies.

The decision to form the ELTO was undertaken as a commitment from the Insurance Industry to people who suffer illness or injury in the workplace and need help identifying their Employers Liability Insurers.

Before you arrange Employers Liability cover we will need your Employer Reference Number (ERN). This is the unique number for employees’ income tax and national insurance contributions which every company operating a PAYE scheme will have.


Your company will have an Employers Reference Number (ERN).  This is the Employer PAYE reference and should include additional references for any separate subsidiary companies that you administer. 

For your assistance the ERN reference can be found on the following documents, P45 , P60,  P11/D and most payslips, in the following formats:-

  1. NNN/Aznnnnn –  for references allocated after 2001
  2. NNN/Annnnn – for references allocated prior to 2001.

The only exception where you may not have an ERN is if payments to all employees fall below the PAYE threshold.