Health and Safety Executive

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.

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Updated 02.11.09