Employers Liability Insurance changes not all good news
Jan 1, 2010
Employers need to be aware of the implications following changes introduced by the Employers' Liability (Compulsory Insurance) (Amendment) Regulations 2008 which came into force on 1st October 2008.
Changes to Regulation 4 (4) of The Employers' Liability (Compulsory Insurance) Regulations 1998 mean that employers no longer have a legal requirement to retain a copy of their Employers Liability certificates for 40 years. However it is still prudent for employers to retain evidence of insurance. If there are any gaps in their insurance history they may be liable to pay for those parts of any claim themselves.
The removal of the 40-year specified period from the regulations has effectively widened the customer responsibilities especially as some disease claims can appear over 40 years after a period of exposure.
However the amendment regulations do allow employers some flexibility in the way in which they display the certificate. It is now permitted for employers to place a copy of their certificate on their own internal website as long as all employees have reasonable access to it.
Amid all of these changes it is important to remember one fact. Those employers who are obliged to take out Employers’ Liability Insurance, but fail to do so, are still at risk of a £2,500 penalty for every day they are without cover.
