The interaction between employers’ liability insurance and health and safety
The H&S Dept
As you will probably know, most employers are legally required to have employers’ liability insurance.
There are limited exceptions. For example, you may not need Employers’ Liability insurance if the only person you employ is based outside England, Scotland and Wales. The legal requirement for compulsory insurance was introduced by the Employers’ Liability (Compulsory Insurance) Act 1969.
Your Employers’ Liability Insurance (ELCI) must be from an authorised insurer, provide cover of at least £5 million and should be in place as soon as you become an employer. Without ELCI you could be fined £2,500 for every day you do not have appropriate insurance.
You are also required to display your ELCI certificate so that employees can access it, if needed. For example, this could be displayed in your workplace or on your website. You will need to show it to any inspector when they ask you to. Failure to display your ELCI certificate could lead to a £1,000 fine.
What’s this got to do with health and safety?
Employers’ Liability insurance and health and safety are closely linked. The insurance helps an employer meet successful civil claims for compensation where an employee is injured or becomes ill because of their work.
If you have failed to meet health and safety duties, your insurer may still have to deal with the claim, but this could affect your premiums, renewal terms or, in some cases, lead to recovery action depending on the policy and circumstances.
It is therefore extremely important that all aspects of health and safety are taken seriously in your business. This will help eliminate or reduce the risk of someone being injured or made unwell. Should an incident occur, suitable records may help demonstrate the precautions taken and support the investigation and handling of any claim.
What do ELI insurers look for?
Evidence of compliance. Insurers will expect you to be able to demonstrate that you actively comply with The Health and Safety at Work etc. Act 1974 and any other relevant regulations. You should have evidence that proves you have met these responsibilities.
Documentation. Ensuring you keep all relevant documentation means claims can be dealt with fairly and quickly. It may help demonstrate the precautions taken and assist the fair investigation and handling of a claim.
Accident and incident records, including reports, investigations and RIDDOR records where applicable.
Training and competence records, showing employees were properly instructed, trained and supervised.
In the news…
Earlier this summer, an uninsured employer was given a suspended sentence after an employee suffered life changing injuries, after falling through a roof at work in 2024. The employer pleaded guilty for not following the Work at Height Regulations 2005 and also pleaded guilty to not having ELCI at the time of the incident.
In this example, the employee was asked to carry out roof work, without any control measures in place. At the time of the incident the employer did not have ELCI, and so was not insured in the event of injury. Falls from height remain the leading cause of workplace fatalities in Great Britain and also a significant cause of serious injuries.
The employer was given a 12 month sentence (suspended for 18 months) and also ordered to carry out 260 hours of unpaid work. Had The Work at Height Regulations 2005 been properly observed, this would be a very different story.
Next steps
We know that complying with everything health and safety can seem like a daunting task. But helping you achieve this is what we do. In fact, we’re experts in it!
We take the pressure off your business to ensure compliance is met when it comes to health and safety requirements so you can rest assured that your business is in safe hands.
If you would like to discuss any health and safety aspect for your business contact us today to get started. We can help with risk assessments, policies and procedures, auditing, training and eLearning amongst anything else health and safety focused. We look forward to hearing from you.
