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understanding your employers liability insurance certificate

Employers Liability Insurance Certificate (ELIC)

by constructaquote - 25 November 2016


This quick guide will help you to understand exactly what your obligations are in regard to insurance and health & safety regulations within the workplace. It will define exactly what employer’s liability certificates are and what they do.

These certificates often abbreviated as ELIC and are documents received from an insurer. They testify to the fact that you ‘do’ have employer’s liability insurance. They also show the details of your coverage and your insurer. All employers are required by law to display these certificates in a place where all employees can see them.

Employers Liability Insurance Overview

The purpose of this mandatory insurance is to cover compensation claims filed by permanent, contracted and casual employees; this also applies to apprentices and former employees. These claims can be for either work-related illnesses or for injuries. A good example would be if a worker slipped on a wet surface and suffered a back injury. It could also be an illness caused by chemicals or polluted air particles. If the employee, contractor or apprentice can prove negligence then they will likely claim for compensation and damages.

Having employers liability insurance helps to offset all the compensation costs and legal fees.
Under the Employers Liability Act of 1969, employers are required to carry no less than £5 million worth of liability insurance. If they neglect to carry that much liability insurance they may be fined as much as £2,500 for every day they do not have it.

There are some businesses, however, that are exempt from this requirement including family businesses, public organisations, and certain companies that have all their employees working abroad.

How to Display Your Employers Liability Insurance Certificate

Again, most businesses are required to display their ELIC in a space where all employees have access to it. In times past employers were required to display a hard copy of their certificate. As of 2008, however, this legislation has been amended to allow them to display it electronically if they want to. No matter how they choose to display it they still need to make sure all employees know where to find it and how to access it. Whenever a business has changes to their liability insurance certificate, they must file the old version and replace the former copy with the newer upgraded version.

Obtaining Your ELIC

When you purchase your Employers Liability Insurance, the documents will be sent to you by your insurer. The package should include all the details of your ELIC.

If you choose to purchase your liability insurance from constructaquote.com, we will send an email to your inbox with a secure link to your documents. You can print out your certificate and display it as a hard copy, or you can save it and display it online on a web page where all employees can access it. Always be sure to let any new employees know where to find your Employers Liability Insurance Certificate.

Your ELIC Details

When you get your ELIC in the mail make sure the following information is displayed on it:

1.The Amount of Coverage 

This will be the maximum amount your insurer will pay out on any claim. It is required by law that you carry at least £5 million worth of coverage. However, most insurance providers (constructaquote.com included) will offer you £10 million worth as the standard.

2. Which Company is Being Covered

Your insurance certificate should make it clear exactly what company or companies are being covered on this policy.

3. Insurer’s Name                                                                                                          

Your certificate should also reflect the name of the insurer you have your policy through. Your policy should be signed by a qualified representative of that insurer and they should be regulated and authorized by the FCA.

If you need more information about Employers Liability Insurance Certificates or have any questions, feel free to let us know in the comments section below.