Employers' Liability Compulsory Insurance

Under the Employers' Liability (Compulsory Insurance) Act 1969, it is compulsory for employers to insure against liability for negligence that could result in workplace injury, illness or disease. The Government is aware that many businesses have been hit hard by significant price increases in the ELCI markets and it is working closely with trade associations and the insurance industry to improve the outlook.

A number of initiatives are being developed across Government. The increased cost of ELCI may encourage insurers to provide incentives for companies that have improved health and safety management and track record.

SME Indicator

HSE sees insurance as a valuable way to drive forward the message of the importance of health and safety, encouraging small and medium-sized enterprises in particular to consider it and encourages insurers to provide tangible benefits for those who who can show they performing well.

Publications

• Review of Employers' Liability Compulsory Insurance: First stage report ELCI 1 Department for Work and Pensions, published in 2003. The report considers the current situation regarding ELCI, in particular the steps that the Government is taking on the financial implications of increases in ELCI premiums. It includes an Agenda for Action .
• Review of Employers' Liability Compulsory Insurance: Second stage report ELCI 2 Department for Work and Pensions, published in 2004. This takes forward the Agenda for Action and describes the work undertaken in this area.
• Employers’ Liability (Compulsory Insurance) Act 1969 [HSE40(rev2)] published in 2006. This is a guide for employers.
• The Association of British Insurers has produced a guide Insurance for Small Business. It can be downloaded at: www.abi.org.uk/BookShop/ResearchReports/SME_Guide.pdf

Research

• Survey of Compliance with Employers' Liability Compulsory Insurance (ELCI) Act 1969 RR188 carried out by Greenstreet Berman Ltd and Published in 2003.
• Changing Business Behaviour CRR 436/2002