Health and safety for small businesses

A simplified guide to health and safety compliance for businesses with fewer than 5 employees. Covers what you must do, what you can skip, and free HSE tools to help you comply without spending a fortune.

UK-wide
Guide summary

You must protect your employees from harm. Get employers' liability insurance for at least £5 million. Assess risks in your workplace and provide first aid. Keep records of any accidents.

  • Get employers' liability insurance (£5 million minimum cover)
  • Assess risks in your workplace
  • Provide first aid equipment and an appointed person
  • Keep an accident book and record all injuries
  • Tell employees about risks and safety procedures
  • Display insurance certificate or make it available
  • Count all employees including part-time and temporary
  • Penalty of £2,500 per day for no insurance
  • Review risk assessment at least once a year
  • Report serious accidents to HSE under RIDDOR
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UK-wide

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Health and safety is simpler than you think

If you run a small business with fewer than 5 employees, health and safety law still applies to you - but the requirements are lighter than for larger businesses. This guide explains exactly what you must do, what you can skip, and how to comply without spending a fortune.

The law requires you to protect your employees and anyone affected by your work from harm. This duty exists from your very first employee, regardless of whether they work full-time, part-time, or casually.

What "fewer than 5 employees" means

The 5-employee threshold is important because it affects your paperwork requirements. Count everyone you employ, including:

  • Full-time employees
  • Part-time employees
  • Temporary or casual workers
  • Apprentices

Do not count yourself (the business owner), genuine volunteers, or self-employed contractors who work for you.

EMPLOYEE COUNT 5

Fewer than 5 employees: simplified paperwork

With fewer than 5 employees, you do not need to:

  • Write down your health and safety policy (though having one is still good practice)
  • Record your risk assessment findings (though you still must do the assessment)

Important: The law requires you to have a policy and do risk assessments - you just do not have to write them down.

5 or more employees? Once you have 5 or more employees, you must have a written health and safety policy and record your risk assessment findings in writing. The underlying duties are the same - you just need to document them.

HSE guidance on health and safety policies (opens in a new tab)

What you ALWAYS need - regardless of size

Even the smallest employer must meet these requirements:

1. Employers' liability insurance

You must have employers' liability (EL) insurance with at least £5 million cover from your first employee. This protects you if an employee is injured or becomes ill because of their work.

  • Penalty for no insurance: £2,500 fine for every day without cover
  • Display requirement: You must display your certificate or make it available to employees on request - failure to do so carries a £1,000 fine

EL insurance exemptions

You may be exempt from EL insurance if:

  • Family business: All your employees are close relatives (spouse, civil partner, parent, child, sibling)
  • Single-director company: You are a limited company with one employee who owns 50% or more of the shares
  • Work abroad: Employees work outside Great Britain for more than 14 consecutive days

Even if exempt, you should consider getting cover - you could still be liable if a family member is injured at work.

2. Risk assessment

You must assess the risks in your workplace, even if you do not have to write it down. Think through:

  • What could cause harm to your employees or others?
  • Who might be harmed and how?
  • What are you already doing to control the risks?
  • What else could you do?

3. First aid provision

Every workplace needs first aid provision. For a small, low-risk business (office, shop, small workshop), this typically means:

  • An appointed person: Someone who takes charge in an emergency and calls the emergency services. No formal training is required, but awareness training is recommended.
  • A first aid kit: A basic kit with plasters, bandages, sterile dressings, and disposable gloves. No medicines should be kept in it.

Higher-risk workplaces (construction, manufacturing) may need trained first aiders even with fewer than 5 employees.

4. Accident records

You must keep records of work-related accidents and ill health. This can be:

  • An accident book (available from HSE or stationers)
  • Your own recording system
  • An electronic record

Records must comply with data protection law - keep them securely and only share with those who need to know.

Serious accidents must be reported to HSE under RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations). This includes deaths, specified injuries, and accidents causing more than 7 days off work.

5. Information to employees

You must tell your employees about:

  • The risks they face in their work
  • What you are doing to control those risks
  • Who to go to with health and safety concerns
  • First aid arrangements
  • Fire and emergency procedures

This does not need to be a formal document - a conversation may be enough for a small team, but make sure everyone understands.

Common mistakes small businesses make

Avoid these frequent errors:

"I do not need to bother - I only have 2 employees"

Wrong. Health and safety law applies from your first employee. The penalties for non-compliance are the same regardless of size. HSE can prosecute small businesses, and insurers may refuse claims if you have not met basic requirements.

"My employees are family, so it does not apply"

Mostly wrong. The only exemption for family members is employers' liability insurance. All other health and safety duties apply - you must still assess risks, provide first aid, and keep accident records.

"I work from home, so I do not need to worry"

Wrong. If you employ people who work from your home or their own homes, you still have duties. You must assess risks in their working environment and ensure they have safe equipment.

"A risk assessment is complicated and expensive"

Wrong. For most small businesses, a risk assessment takes 30 minutes to an hour. HSE provides free templates and tools - see below. You do not need to hire a consultant.

"I cannot afford proper training"

You can. HSE provides free online guidance covering most topics. Basic first aid awareness courses cost under £50. Many risks can be controlled through common sense and following manufacturer instructions.

Free HSE tools and resources

HSE has created a "Simple Health and Safety" section specifically for small businesses. These resources are free:

  • Risk assessment templates: Downloadable Word documents you can fill in for common business types
  • Health and safety policy template: Even if you do not need to write one, having a template helps you think through your approach
  • Interactive risk assessment tool: Answer questions online and get a downloadable assessment
  • Sector-specific guidance: Tailored advice for retail, offices, hospitality, construction, and more
  • First aid needs assessment tool: Work out what first aid provision you need
  1. 1

    Start with the HSE simple health and safety site

    Visit hse.gov.uk/simple-health-safety - this is designed specifically for small businesses and walks you through what you need to do.

  2. 2

    Get employers' liability insurance

    Contact insurers or use a comparison site. Most policies provide £10 million cover (more than the £5 million minimum). Budget around £100-500 per year for a low-risk office business.

  3. 3

    Do a basic risk assessment

    Walk through your workplace. What could hurt someone? Use the HSE template if it helps. For fewer than 5 employees, you can keep this in your head - but writing it down helps you think it through.

  4. 4

    Sort out first aid

    Buy a first aid kit (under £20 from most suppliers). Decide who will be your appointed person - someone to take charge if there is an accident.

  5. 5

    Tell your employees

    Have a conversation about the risks in your workplace, what to do in an emergency, where the first aid kit is, and who the appointed person is.

  6. 6

    Get an accident book

    Buy one (under £5) or set up your own recording system. Record any work-related injuries or illness.

When to get professional help

Most small businesses can manage health and safety themselves using HSE guidance. Consider getting professional help if:

  • You have unusual or high-risk activities: Construction, working at height, hazardous substances, confined spaces
  • You have had an accident or near miss: A consultant can help you understand what went wrong
  • HSE has contacted you: If you have received an improvement notice or are being investigated, get advice
  • You are tendering for contracts: Some clients require evidence of formal health and safety management
  • You are growing rapidly: Once you pass 5 employees, you need written documentation - a consultant can help you set up systems that scale

You do not need expensive ongoing retainers. A one-off consultation to set up your systems typically costs £200-500 for a small business.

Your next steps

If you are just starting out:

  1. Get employers' liability insurance before your first employee starts
  2. Walk through your workplace and think about what could cause harm
  3. Buy a first aid kit and decide who is the appointed person
  4. Tell your employees about the risks and what to do in an emergency

This basic setup will keep you legal and - more importantly - help keep your people safe.

Official guidance and tools