What will the changes mean for employers?
The main outcomes of the review are that:
- the requirement to keep Employers' Liability policy certificates for 40 years will be removed, and will be replaced by guidance.
- the requirement to display the policy certificates will be amended to allow it to be done electronically.
See the government’s response in full. The timetable has yet to be agreed.
Background – extracts from the government’s response
The Administrative Burdens Measurement Exercise (ABME) carried out in 2005/6 identified the requirement to display employers’ liability insurance certificates and subsequently retain the certificates for 40 years as a major burden that the government places on business. This led to the review of the regulations.
The current regulation 4 (r4) on retaining policy certificates carries no penalty for non-compliance and is not enforced. However, it is good business practice to retain records relating to insurance polices while potential liability for claims remains. Failure to do so could mean businesses meeting the full cost of compensation payments.
Businesses should not ignore the risks associated with future compensation claims being made for illness or injury in the work place.
Long-tail diseases can appear over 40 years after exposure to their cause and therefore employers should ensure that they have a complete record of their employers’ liability insurance for that period.
Ministers recognise that difficulties remain in tracing some historic employers’ liability insurance policy information. The Department will continue to tackle these through ongoing work with representatives of the insurance industry, legal professionals and organisations representing employers and employees.
The requirement to display employers’ liability insurance certificates will remain but businesses with suitable IT systems will now be able to comply with the regulation by giving employees electronic access through an intranet/internet site. This should make compliance significantly easier for businesses that have employees in a number of locations.
Removing the requirement to protect certificates from damage should also remove some compliance costs.