When a prosecution is a good reminder that Employers’ Liability Insurance is compulsory
What happened?
During an inspection, which was part of an initiative with the police and city council, a motor vehicle repair company was unable to produce a certificate of insurance.
An HSE investigation following the discovery found that the company did not have employers’ liability insurance in place. Employers’ Liability insurance ensures that employers have at least the minimum level of insurance to cover against claims brought by employees that are injured at work or become ill as a result of their work.
Speaking after the hearing the HSE Inspector said: “Employers carrying out a business in the United Kingdom must have Employers’ Liability insurance in place. There have been over 7,000 injuries and 33 fatalities during the past five years in motor vehicle repair shops. Should an incident have occurred at the premises the failure to have insurance would mean that employees may not get any compensation for any injuries or ill-health attributable to their work.”
Legal Outcome
The motor vehicle repair company pleaded guilty to breaching Section 4(2)(b) of the Employers’ Liability (Compulsory Insurance) Act 1969 and was fined £726 with costs of £557.
What can we learn from what happened?
Hopefully there is nothing to be learned here, just a reminder that Employer Liability Insurance is a legal requirement.
The company is now in liquidation.
Source of Information
SHP Online