Mill House Metals Ltd, a scrap metal merchant based in Widnes, Cheshire, has been fined £1,000 and ordered to pay £2,000 in costs after failing to hold compulsory Employers’ Liability Insurance. The prosecution by the Health and Safety Executive (HSE) at Liverpool Magistrates Court on 15 April 2026 highlighted a significant breach of legal obligations, leaving employees unprotected.
Company risked employees’ compensation rights by failing to insure
The court heard that an investigation by the HSE, following an incident at the company’s Hale Road site, revealed a critical lapse in compliance. Mill House Metals Ltd was found to have operated without a valid certificate of Employers’ Liability Compulsory Insurance (ELCI) for a substantial period, specifically between 18 April 2025 and 30 September 2025. This failure to maintain the legally required insurance meant that, had any of their staff suffered a work-related injury or contracted an occupational illness during this time, they would have been denied the statutory means to pursue a civil claim for damages.
Employers’ Liability Compulsory Insurance is a cornerstone of workplace safety legislation in Great Britain, designed to protect employees by ensuring that businesses can meet their financial obligations if a worker is injured or becomes ill due to their employment. The Employers’ Liability Compulsory Insurance Act 1969 mandates that almost all employers must hold this cover. Its absence can have devastating consequences for individuals and their families, potentially leaving them without compensation for pain, suffering, and loss of earnings.
HSE principal inspector Emily Osborne underscored the gravity of the company’s oversight. “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,” she stated. “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 HSE serves as Britain’s national regulator for workplace health and safety, dedicated to protecting people and places. Its prosecution of Mill House Metals Ltd sends a clear message to all businesses: compliance with ELCI regulations is not negotiable. The regulator actively reminds all company owners of their legal responsibility to hold this essential insurance, emphasising that it is a fundamental aspect of operating a responsible and lawful business.
The case against Mill House Metals Ltd, which pleaded guilty to breaching the Employers’ Liability Compulsory Insurance Act 1969, was brought by enforcement lawyer Gemma Zakrzewski. The company’s failure to produce a valid ELCI certificate during the specified period demonstrated a clear disregard for the welfare and legal rights of its workforce. The HSE reiterated that while employers are expected to take all reasonably practicable steps to prevent workplace incidents, the ELCI cover is absolutely vital for situations where injuries or illnesses do unfortunately occur.
Further guidance on the Employers’ Liability (Compulsory Insurance) Act 1969 and related responsibilities is readily available on the HSE website, providing comprehensive information for employers to ensure they meet their legal obligations. This prosecution serves as a stark reminder that the law expects employers to prioritise the safety and financial security of their workforce through appropriate insurance provisions.
Originally published by the Health and Safety Executive.
