16 February 2018
It has recently come to the attention of the Inspectorate that some smaller businesses may not be aware of the requirement to have Employers Liability Compulsory Insurance (ELCI).
Employers who fail to have appropriate ELCI in place may be fined up to £5,000 per day for every day they are uninsured.
Legal requirements
The Law requires employers to take out, with authorised insurers, and continue to have in place, approved ELCI policies. The purpose of the insurance is to cover against any liability for bodily injury or disease that any employee may suffer during the course of their work. It does not guarantee that a claim will be paid to an injured employee, but if the claim is successful it ensures that the company will be able to meet the cost of the claim.
The minimum level of cover is set within the Law at £5m. Once insured, the company will be given a Certificate of Insurance which must be displayed for employees to see.
Exemptions
ELCI is not required where:
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a company has only one employee who owns more than 50% of the share capital of the company
an employee who is closely related to the employer, (as husband, wife, civil partner, father, mother, grandfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister). However, this exemption does not apply to family businesses which are incorporated as limited companies
- the employer is the States of Jersey or one of a limited number of large public organisations listed in the Regulations
Further guidance on Employers' Liability Compulsory Insurance
gov.je