GOVT TO CONSULT ON PROPOSAL TO HELP 300,000 BUSINESSES
May 20 2004.

The Government is consulting on whether to remove the requirement for some of the UK's smallest businesses to have employers' liability compulsory insurance. The move could affect up to 300,000 limited companies where the owner is the sole employee.

The Employers' Liability (Compulsory Insurance) Act 1969 requires employers carrying on business in the United Kingdom to insure their liability to their employees for bodily injury or disease sustained in the course of their employment in Great Britain. There is currently a penalty of up to £2,500 for failure to insure on any day.

The legislation provides that an owner/sole employee is not required to purchase ELCI if the business remains unincorporated.

Information from www.dwp.gov.uk