Employers’ liability insurance is a legal requirement

A pipework manufacturer has been prosecuted for failing to issue an employer’s liability insurance policy.

Ductwork Environmental Services Ltd, based in Essex is a company that employs people to manufacture steel pipework.

An investigation by the Health and Safety Executive (HSE) unveiled that the company had not complied with the law as it failed to produce a current Employers' Liability Compulsory Insurance (ELCI) certificate.

Any employer needs to have an ELCI certificate and must show a copy to a HSE official immediately on request. When the company was unable to do this, it was issued with an ELCI ‘notice to produce’ but the company failed to comply.

At Harlow Magistrates Court, Ductwork Environmental Services Ltd was fined £1,000 and ordered to pay £750 in costs after admitting five breaches of Section 1(1) of the Employers’ Liability (Compulsory Insurance) Act 1969.

HSE Inspector, David King said:

“The Employers' Liability (Compulsory Insurance) Act 1969 requires all employers have insurance to cover employees for injury or ill health caused whilst at work.”

“Failure to have such insurance could leave any employee who has an accident, or suffers ill health because of work unable to obtain compensation for their suffering, which potentially leaves employees doubly vulnerable.”

Failing to hold employers liability insurance is a serious offence and the HSE claim this incident should serve as a warning to other employers.