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Page written by Chris Godfrey. Last reviewed on August 28, 2025. Next review due April 1, 2027.
Premiums for employers’ liability insurance can range from CAD $170 to CAD $250 per month, but just as no two Canadian businesses are alike, so no two business insurance needs are the same. The premium you pay will depend on your business type, the number of people you employ, and the risks attached to what you do or sell.
Although the more employees you have will generally mean paying a higher premium, employers’ liability cover typically costs less per employee when you cover more workers. For example, the cost for one employee may be CAD $200+ per year, but the premium to cover five workers may be CAD $750.
Example costs of insuring one or more employees:
| Number of employees | Typical annual premium |
|---|---|
| One office worker | CAD $60 |
| One worker | CAD $210 |
| Three workers | CAD $350 |
| Five workers | CAD $750 |
Employer’s liability (EL) insurance is a type of business insurance that protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business.
Employers’ liability pays the associated legal and compensation costs if one or more of your employees are injured or made sick due to working for your business. It can also cover accidental injury caused by an employee to a third party, such as your customers.
Employers’ liability insurance covers full-time and part-time employees, any self-employed contractors you hire, temporary staff, interns, apprentices, volunteers, and people taking part in work experience or training schemes. It can also cover your employees if they are working for you remotely or working from their home.
The policy will typically pay for the inured party’s medical expenses, rehabilitation costs, and any compensation and damages costs. It may also cover the claimant’s legal expenses and your own.
If your business employs workers other than yourself, then in most cases yes, you do. Employers’ liability insurance is a mandatory legal requirement for most US employers. Your policy must cover you for at least CAD $5 million and come from an authorised insurer. Choosing not to buy EL cover can be expensive. Your business could be fined up to CAD $2,500 for every day you are not properly insured, and you can also be fined CAD $1,000 if you do not display your EL certificate or refuse to make it available to inspectors when they ask.
You may not need employer’s liability insurance if you only employ your spouse, family members, or someone who is based abroad. Sole traders and self-employed who work for themselves and on their own do not usually need employers’ liability insurance.
Top tip: Depending on the nature of the work your business does and the type of risks it presents to your employees, you may need more protection than CAD $5 million. Being under-insured could leave you exposed to catastrophic costs if a major claim is made against your business. If you are not sure how much cover you need, simply contact Swoop today to speak to an expert EL adviser.
Swoop’s Canadian customers have access to a variety of providers offering competitive rates. However, premiums will vary according to how many employees are covered, the activities of your business (is it high risk?), and the level of cover you require – a minimum of CAD $5 million.
The type of business you operate has a significant impact on the cost of your employer’s liability insurance. Some industries, such as manufacturing, carry more risk of accident, personal injury or even fatality than other sectors such as admin and clerical work. The more the risk your business carries, the higher your premium will be.
Examples of industries with a higher risk of accident and injury:
As well as risk and the number of employees covered, many insurers will also calculate your premium based on the structure of your business – sole trader, partnership, or limited company. Although sole traders who work on their own do not usually require employer’s liability cover, those that do employ others will typically pay less per covered worker than a partnership. In turn, a partnership will usually buy their EL cover at a lower cost per employee than a limited company.
In short, many factors can impact how much your employers’ liability cover costs – which is why it makes good business sense to get comparison quotes before buying your policy.
All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let an accident or oversight become a catastrophe for your business. Contact Swoop today to compare top-quality employers’ liability cover from different providers and to discuss all your business insurance needs.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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