Health and Safety - Online Library

 

Employers’ Liability (Compulsory Insurance) Act 1969 and Regulations 1998

 

Employers are responsible for the health and safety of employees while they are at work. Employees may be injured at work, or they or former employees while they are at work. Should employees become ill at work or as a result of the work they have carried while employed then they might try and claim compensation from the employer. The Employers’ Liability Compulsory Insurance Act ensures that all employers have the minimum amount of insurance to cover such claims.

The insurance allows the employer to meet claims and costs incurred while carrying out their regular duties.

It is important that this is not confused with public liability as this covers for claims made against a person/company by members of the public or other businesses not employees.

All employers need employers liability insurance, however there are some exemptions, these are:

• Most public organisations including government departments and agencies, local authorities, police authorities and nationlised industries
• Health service bodies, including national health trusts, health authorities
• Some other organizations which are financed through public funds
• Family businesses i.e. if employees are directly related to the employer (does not apply to family businesses that are incorporated as family businesses)

Insurance Liability is only required by law for those people who the employer employs, however insurance may be needed if:

• National insurance and income tax is deducted from the money paid to them
• The employer has the right to control where and when they work and how they do it
• Most materials and equipment are supplied by the employers
• The employer has a right to any profit workers make even though the employer may choose to share this with them through commission, performance pay or shares in the company.
• That person is required to deliver the service personally and they cannot employ a substitute if the are unable to the work
• They are treated in the same way as other employee, for example, if they do the same work under the same conditions as some other employee

In most cases employer’s liability insurance is needed for volunteers. Although in general the law may not require an employer to have insurance for:

• Students who work unpaid
• People who are not employed but are taking part in youth or adult training programmes
• School children on work experience programmes

Should you be connected with the above groups then you should check you insurance policy to ensure that you have the appropriate cover.

Under the regulations, employers must display in a suitable convenient location ensuring that the copy on display is current.

Certificates MUST be retained for 40 years, this id due to some health risk symptoms might not come to light for some time. This does not apply to policies that expired before Jan 1999.

The HSE enforced this law and will check that employers have a current insurance certificate with an approved insurer for at least 5 million.

Employers can be fined up to £5000 for any day they are without suitable insurance and up to £1000 if they do not display the certificate or refuse to provide it to HSE inspectors upon request.