July 16, 2010
As calls for increased Employers’ Liability punishments ring around Whitehall, an Essex car wash company has been fined £6,750 for failing to properly insure itself against staff injuries and deaths.
Prowash Systems Limited, which operates a car wash in Rayleigh, was hauled in front of Southend Magistrates after Health and Safety Executive (HSE) investigations uncovered a lack of up-to-date Employer’s Liability Compulsory Insurance (ELCI).
By law, all employers need to have an ELCI certificate and must be able to show HSE officials immediately upon request. When Prowash Systems failed to do so, an ELCI “notice to produce” was issued.
When management then failed to comply with the notice, and were absent from HSE interviews organised to discuss their non-compliance, Magistrates became involved.
After another no-show, the court found Prowash Systems guilty of breaching Section 1(1) of the Employers’ Liability (Compulsory Insurance) Act 1969 in the company’s absence, regarding the lack of both certificate and renewed insurance.
In addition, Prowash Systems was landed with a breach of Section 4(2)(b) of the same Act, for failing to produce a certificate upon request.
“Injuries can stop employees from working for a significant period of time - or even for life, and workers must be protected with compulsory insurance,” commented HSE Inspector Steve Hook.
“Employers’ Liability Compulsory Insurance means those employees will not be left to fend for themselves and their families. It is designed to protect employees and ensure they are covered if they are injured or made ill by their work.
“Failing to have this insurance potentially leaves members of staff doubly vulnerable in the event of an accident or ill health. This case is a warning to all employers about how seriously HSE takes this issue.”
The punishment comes as the Association of Insurance and Risk Managers (Airmic) calls upon the government to increase ELCI penalties, forcing employers to take more notice of insurance misgivings.
There is currently a penalty of up to £2,500 per day that an employer does not have full ELCI cover.
