Employer liability insurance certificates: rules to change
As of 1 October 2008, the rules requiring an employer to display an employers’ liability insurance certificate will be changed so that the requirement will be satisfied if the certificate is made available in electronic format and is reasonably accessible to relevant employees.
The Employers’ Liability (Compulsory Insurance) Regulations 1998 currently require an employer to retain a copy of the certificate for 40 years and display one or more copies at each place of business, “reasonably protected” from being defaced or damaged.
Most organisations frame copies of their certificates and hang them on staff notice boards in communal areas. There is a penalty of up to £1,000 for failure to display and provide a copy of a certificate to an inspector on request.
However, a review by the Department for Work and Pensions (DWP) estimated that the total cost to UK business of the requirement to retain and display the certificates is £71m.
The Employers’ Liability (Compulsory Insurance) (Amendment) Regulations 2008 therefore allow employers to display the certificate online, so long as it is readily available to all employees. The Regulations also allow employers to keep the certificate displayed in the workplace if this is easier. The removal of the requirement to display the certificate is part of the DWP’s campaign to reduce the administrative burden on businesses by 25%.