What is the Employers Liability (Compulsory Insurance) Act1969?


Each and every employer in the UK is required by law to hold an adequate amount of Employers Liability insurance designed to protect them financially from potential compensation claims by current or former employees.

How Employers Liability Compulsory Insurance Works

Here are the most important characteristics of the Employers Liability (Compulsory Insurance) Act 1969 worth mentioning:

  • Compensation for any occupational bodily injury or illness, afflicted to an employee on or off the business premises, is payable under the Employers Liability insurance, unless the losses have been caused in a motor vehicle accident.
  • Employers Liability insurance is required for every employee who is working under a contract of service or apprenticeship.
  • Employers Liability compulsory insurance does not apply to public liability claims.
  • Employers Liability insurance is compulsory for all employees based in England, Scotland and Wales but is not required for workers who are based abroad. However, if an employee, who is otherwise based abroad, spends two weeks or more in the UK, buying employers liability coverage for them is in order.
  • The minimum Employers Liability insurance you are required to hold, is £5 million, although most business owners estimate their Employers Liability insurance needs to at least £10 million.
  • Failure to comply with the Employers Liability (Compulsory Insurance) Act 1969 can result in a fine of up to £2,500 per day without the necessary insurance.
  • Employers Liability insurance buyers must make sure the provider they intend to purchase a policy from is authorized.
  • Some employers are exempt from the Employers Liability (Compulsory Insurance) Act 1969, including public, local and governmental organizations.
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