Merchant Fined for Lack of Compulsory Employers Liability Insurance

Brief Summary

Mill House Metals, a scrap metal merchant in Widnes, was prosecuted by the Health and Safety Executive for breaching the Employers Liability Compulsory Insurance Act 1969 due to an absence of valid Employers Liability Compulsory Insurance certificates during part of 2025. The case highlights that ELCI is a mandatory requirement to ensure employees can pursue civil claims if they are injured or become ill due to work.

What Was The Incident?

Following an incident at its Hale Road site, the HSE visited Mill House Metals and found there was no valid certificate of Employers Liability Compulsory Insurance between 18 April 2025 and 30 September 2025. When asked, the company was unable to produce a valid ELCI certificate, meaning its staff had no means of pursuing a civil claim against the business if they were injured at work or contracted a work related illness or disease.

What Was The Outcome?

Mill House Metals Ltd pleaded guilty to breaching the Employers Liability Compulsory Insurance Act 1969. Liverpool Magistrates Court fined the company £1,000 and ordered it to pay £2,000 towards costs on 15 April 2026.

Key Points To Consider

Confirm your Employers Liability Compulsory Insurance is valid. Do not rely on assumptions about cover. Check that a valid certificate exists for the full period required and that you can produce it when asked.

Understand why ELCI protects employees. ELCI is designed to ensure employees have access to civil compensation if they are injured or become ill due to their employment.

Treat insurance as a compliance requirement, not optional extra cover. The legal duty is separate from health and safety management, and employers can still face prosecution if insurance requirements are not met.

Expect enforcement to follow up incidents. In this case, an incident led to an HSE visit and verification of ELCI. Ensure your insurance records and documentation are ready to demonstrate compliance.

HSE Prosecution Link