Hello!

[smallcharity]

We are a small charity registered in August 2018 run and managed entirely by volunteers. We have recently found out that it is mandatory for us to get employers liability insurance. We are struggling to find a specialist insurer. Do we stop our operations until we get the insurance?

[R0b]

Can I ask why you are trying to find a specialist insurer? I was of the impression that all employers require employer liability insurance and it is a standard run of the mill type of insurance irrespective of whether you are a charity, company or sole trader. The minimum level of cover I believe is £5million.

I think the offence for not having EL in place is a fine should you be asked to produce or display your EL certificate but I don't think there is an actual legal requirement for you to cease operations. It just means there is a risk of liability to the charity and possibly those running the charity.

Tagging des8 who might have better knowledge on this.

[des8]

More or less all employers are required under the Employers Liability (compulsory insurance) Act 1969 to effect such a policy.

You must use an insurer authorised under the terms of the Financial Services and Markets Act 2000.
The Financial Services Authority (FSA) maintains a register of authorised insurers. You can check whether a company is authorised by searching their register on www.fsa.gov.uk, or telephoning the FSA on 0845 606 1234.

A copy of your certificate of insurance must be displayed where employees can read it.

Who said it was mandatory for you to effect EL cover?

Whether or not a charity with no employees , but solely volunteers, needs to effect EL insurance is debatable and there is no definite answer!
The charity still has a duty of care to its volunteers and insuring your liability to them against injury and illness usually falls into one of two covers - either public liability insurance or employer's liability insurance.
Contact your PL insurers (I assume you have PL cover) and ask if the cover includes liability to volunteers, or can be extended to cover EL .

The difficulty arises in that the Health and Safety Executive includes volunteers in its definition of employees, and so require EL to cover them.
Failure and HSE levy fines of up to £2500 per day for non compliance.

In view of the uncertainty, and the level of fines that can be imposed, the cost of contesting a fine if EL was not in position, I would strongly recommend considering effecting EL cover as the cheapest and less stressful way forward!