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Firm fined for failing to hold insurance

16 August 2013

A Sunderland firm has been fined for failing to hold statutory insurance that enables employees to claim compensation should they be injured at work.

An investigation was carried out by the Health and Safety Executive (HSE) following information received suggesting Sun Spirit Ltd was uninsured.

Sunderland Magistrates’ Court heard today (16 August) that HSE inspectors found the company did not hold any Employer’s Liability Compulsory Insurance between 9 Feb and 13 December 2012. This meant the firm, which provides and installs solar panels, was not insured against liability for bodily injury or disease sustained by their employees resulting from their work.

Sun Spirit Ltd of Quay Court, Sunderland, was fined £750 and ordered to pay £850 in costs after pleading guilty to breaching Section 1(1) of the Employers’ Liability (Compulsory Insurance) Act 1969.

After the hearing, HSE inspector Andrea Robbins said:

"As well as being a legal requirement, Employers’ Liability Compulsory Insurance offers important protection for employers and employees alike.

"Failure to have such insurance could leave any employee who is injured or suffers ill health because of their work unable to get any compensation for their suffering.

"The failure of employers to insure is seen as a serious matter and HSE will continue to take legal action where appropriate."

Notes to editors

  1. The Health and Safety Executive is Britain’s national regulator for workplace health and safety. It aims to reduce work-related death, injury and ill health. It does so through research, information and advice, promoting training, new or revised regulations and codes of practice, and working with local authority partners by inspection, investigation and enforcement.
  2. Section 1 of the Employers’ Liability (Compulsory Insurance) Act 1969 requires that employers carry insurance against the personal injury of their employees. As well as being insured, employers must make available details of the insurance for staff to see. This requirement applies to most companies; exemptions include public organisations and certain micro companies. Under section 5, offenders can be sentenced, on summary conviction in the Magistrates’ Court, to a fine of up to level 4 on the standard scale (£2500).

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