Firm fined for lack of compulsory ELCI insurance
A landscaping firm based in Norfolk failed to purchase
Employers' Liability Compulsory Insurance (ELCI) and has been fined
as a result.
A query by the Health and Safety Executive (HSE) found that The
Norfolk Ranger Ltd had not bought the insurance, which protects
employees from financial worries following a workplace injury or
ill health.
Employers are required by the The Employers' Liability
(Compulsory Insurance) Act 1969 to insure their liability against
injuries, disease or death suffered by their staff due to work.
Legally, firms must insure for £5 million, but The Association of
British Insurers advises that £10 million would be a more suitable
minimum cover.
In April, the firm was asked by the HSE to disclose its current
ELCI certificate, which the firm could not do. Following further
investigation, the HSE discovered that the firm did not have
ELCI.
Employers can be fined up to £2,500 per day for failing to have
the insurance in place. The Norfolk Ranger Ltd admitted breaching
Section 1(1) of the Employers' Liability (Compulsory Insurance) Act
1969, at Swaffham Magistrates’ Court. The firm was fined £700 with
£300 costs.
HSE Inspector, Steven Gill, said, "Injuries can stop employees
from working for a significant period of time – or even for life,
and it is vital that they are protected – that is why this type of
insurance is compulsory. ELCI means those employees will not be
left to fend for themselves and their families if unable to earn a
wage.
"Failing to have this insurance potentially leaves members of
staff doubly disadvantaged in the event of an incident or ill
health. This case is a warning to all employers about how seriously
HSE takes this issue," he added.