Are you guilty of not having Employers' Liability Insurance?

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The City of London Magistrates Court found the proprietor of a London based business guilty of not having Employers’ Liability Compulsory Insurance. He must now pay £500 plus prosecution costs of £10,000 and £1,000 in compensation. Throughout the case, the proprietor maintained his innocence of the breach, pleading not guilty to failing to have the required insurance.

Throughout the case, the proprietor maintained his innocence of the breach, pleading not guilty of failing to have the required insurance. The charges against his business were dismissed as the Court felt that he was responsible for the breaches.  On 15th July 2005, one of the days without insurance cover, a 17 year old college student working as a mechanic sustained a leg injury in an incident with a vehicle, resulting in permanent scarring. The duties of the injured teenager, and her colleague, included paint stripping and brake changing, for which they were paid £3 an hour, and the convicted man's not guilty plea was based upon his understanding that they were not workers, but attending his business to watch, and therefore additional insurance was not required. However, the prosecution introduced a questionnaire signed by him that showed that he had falsely claimed to the college that he did have insurance cover.

Having the right insurance in place means the victim can get some compensation to cover losses and help their recovery. There are positive steps employers can take to manage the risks employees are exposed to. Apart from providing a safe place of work in terms of safe premises, equipment and machinery etc, every employer has a duty to ensure safe systems of work are in place. The young person in this case thankfully did not suffer more serious injuries, but if she had, she might at only 17 years old have been left unable to work again and yet not received any compensation.

Certain types of insurance cover are mandatory and your business must be covered by law. The Employers’ Liability (Compulsory Insurance) Act 1969 requires that employers have insurance cover against claims involving employees. All businesses need Employers’ Liability Compulsory Insurance unless exempt under this Act. This legal requirement does extend to include workers who might incorrectly be thought to be “non employees”, such as trainees or students on work experience.

A good insurance broker will arrange the most appropriate insurance cover for your business, including other types of cover which should be seriously considered to help prevent your business suffering financially.

To find your local insurance expert visit www.cherrypickedinsurance.co.uk/ta/bpf 

Insurance will be provided through members of the Willis Commercial Network, who are authorised and regulated by the Financial Services Authority

FP698

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