HSE | The HSE has reminded all company owners of their legal responsibility to hold Employers’ Liability Compulsory Insurance (ELCI).
This follows a HSE prosecution of Mill House Metals, a scrap metal merchant based in Widnes, Cheshire.
The company was fined £1,000 and ordered to pay £2,000 towards costs after pleading guilty to breaching the Employers’ Liability Compulsory Insurance Act 1969. By law, employers are required to insure against liability for injury or disease to their employees arising out of their employment – it is compulsory insurance.
The court heard that following an incident at its Hale Road site, the HSE found that there had been no valid certificate of insurance between 18 April 2025 and 30 September 2025. As Mill House Metals Ltd were unable to produce a valid ELCI certificate, this meant that their staff had no means of pursuing a civil claim against the business had they been injured at work or contracted a work-related illness or disease.
Most employers are required by law to provide ELCI cover to ensure successful civil claims can be met. Further guidance can be found on the HSE website at Employers’ Liability (Compulsory Insurance) Act 1969 – HSE.
Mill House Metals Ltd, of Hale Road, Widnes, Cheshire, pleaded guilty to breaching the Employers’ Liability Compulsory Insurance Act 1969. The company was fined £1,000 and ordered to pay £2,000 in costs.
HSE principal inspector Emily Osborne said: “Had Mill House Metal’s employees suffered a work-related injury or illness that warranted a claim for damages, they would have been denied a chance to claim the compensation as recompense for any pain and suffering they had endured.”
“That is the purpose of ELCI. It is not a trivial optional extra, it is a compulsory requirement that is designed solely to protect employees.”
“The law expects employers to take all reasonably practicable steps to prevent their workforce from being injured or becoming ill, but if incidents do occur then Employers’ Liability Compulsory Insurance cover is vital.”
This HSE prosecution was brought by enforcement lawyer Gemma Zakrzewski.
