Routh, your agent is probably reading off a list of must-haves with no knowledge as to the reasons or authority to change. That said, the requirement is nonsense. ELI is to indemnify the company (owned presumably 100% by you) against claims from an employee (you). A scenario whereby you sue yourself is worthy of Monty Python and I suggest would be ruled as flippant by any court. Suggest that you ask the agent why he deems it necessary to have ELI in place given your specific situation. Public liability and professional indemnity insurances are to be expected, possibly with high limits of indemnity. Speak to one of the better commercial insurance brokers for definitive guidance although I suspect that you may be advised that no cover is available.

The Employers Liability (Compulsory Insurance) (Amendment) Regulations 2004 added to the employers exempted from needing insurance: "companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company". So a sole trader who is a limited company is exempted in the same way as an unincorporated one.

Speak to your PI/PL provider. You may find it costs very little to add Employer's Liability, and some times it is easier just to pay up than try to convince an agent you don't need it. I think it was automatically included with my PI/PL at no cost. However, you do need to check that all your insurance covers offshore work. It is a definite exclusion from mine.

Thanks mylesfrancis & leadbelly for the clarification & andybz for the extra information. It could very well be that prospective employers are also out of date with this & automatically ask for it in ignorance. I am just a bit surprised that the Insurance company promoted by IOSH on this website gives incorrect information.