Hidden scandal of UK businesses who fail to pay for Employers’ Liability Insurance

The former landlords of a Lancashire pub were finally convicted last week after they failed to buy insurance to protect their employees. Stephen and Karen Martin were prosecuted by the Health and Safety Executive (HSE) after they employed staff at the Hinds Head pub in Charnock Richard without purchasing the legally required Employers’ Liability Compulsory Insurance.


As the pair did not buy any insurance, they had no means of paying their employees any compensation they could be awarded in the event of them falling ill or suffering an injury at work. Despite being warned by HSE inspectors on several occasions between September 2010 and February 2011, the couple failed to address the issue.


Speaking after the hearing, HSE investigating inspector Shellie Bee said:


‘Employers’ Liability Compulsory Insurance is a legal requirement and not an optional extra. Because Stephen and Karen Martin cut corners to save money, they were putting their employees in a position where they could have potentially suffered a life changing illness or injury at work and had no recourse to any kind of compensation. Despite being given ample opportunity to correct this problem over a period of months, they chose to ignore the advice they were given by HSE so we had no choice but to prosecute.’


In the current economic climate the temptation for businesses to save money by cutting back on worker safety is a worrying trend and one which we feel must be strongly guarded against.


Instead of berating hurt and injured people for having the temerity to claim compensation for accidents at work, the government should focus on the hidden scandal of rogue businesses, large and small, that fail in their legal duty to pay for Employers’ Liability Compulsory Insurance – the clue, after all is in the title.


The UK media is quick to highlight fraudlent accident compensation claims and the mythical ‘compensation culture’  but rather less enthusisatic to turn the spotlight on law-breaking companies…


Bonnar & Company is preparing a dossier on this issue and we would welcome your thoughts.