Employers' liability insurance law

What is employers’ liability insurance?

The law requires employers to take out and keep up approved insurance policies with authorised insurers. This is to cover against liability for bodily injury or disease their employees may suffer in the course of their employment. Some employers are ‘exempt’ from the law.

A contract of insurance is based on the information an employer gives when the policy is taken out. If the information is not accurate, or the questions have not been properly answered, the policy may not cover all the employer’s business activities; it may even be treated as void. If this happens, an employer may be prosecuted. So, it is important to make sure that the policy covers all aspects of the business and to tell the insurers in advance if there is a change of circumstances which may affect the policy.

An employer must be insured for at least £5 million to cover claims arising out of any one incident.

Guide to Employers' Liability Insurance

Penalties for failing to have employers' liability insurance

For every day on which an employer is not insured he may be fined up to £5,000. Any official of a company involved in the offence may be prosecuted as well as the company.

An employer may be fined up to £500 if he does not:

display the certificate of insurance or a copy for the information of his employees
produce the certificate, or copy, when an authorised inspector asks to see it
send the certificate, or copy, to an authorised inspector when asked to do so
allow the policy to be inspected by an authorised inspector

Certificate of insurance

The insurer will issue a certificate to show that the policy meets the conditions of the law. The dates of the policy are shown on the certificate. The certificate must be issued to the employer within 30 days of a contract being initiated or renewed.

The employer must display the certificate, or a copy, at each place of business where it can be seen by the employees. The certificate must be removed from display by the employer when the policy runs out or is cancelled.

Inspections

An authorised inspector can ask to see the current certificate, or a copy, for inspection. The inspector may also ask the employer to allow him to inspect the current policy, or a copy: the Inspector will give the employer reasonable notice. Employers must produce the certificate, policy or copies of them, if the inspector asks to see them.

Definitions

The guidance includes the following definitions:

a business
an employee
authorised insurers
approved policies
exemptions

Insurance claims

The law does not guarantee that an employee will get compensation. The purpose of the law is to make sure that when an employee succeeds in a claim, the employer is insured and can pay compensation.

The law and regulations

Reference should be made to the following laws and regulations, revised editions, for comprehensive details:

Employers' Liability (Compulsory Insurance) (Jersey) Law, 1973 05.225 on the Jersey Law website

Employers' Liability (Comulsory Insurance) (Exemption) (Jersey) Regulations, 1973 05.225.30 on the Jersey Law website

Employers' Liability (Compulsory Insurance) (General) (Jersey) Regulations, 1973 05.225.60 on the Jersey Law website

Copies of the Legislation can be downloaded from Jersey Law website.
Jersey Law website