If you hire labour only subcontractors or contractors to work for you or your building business, you will need employers' liability insurance. These types of contractors are considered employees under UK law, so it is a legal requirement that you take out this insurance for them and you take on responsibility for any claims of liability that involve them. However, you may not need insurance if you are working with bona fide subcontractors as they are likely to have their own liability insurance in place for them and their and employees.