New guide for SMEs purchasing EL insurance

The ABI has developed the attached guide for SMEs purchasing insurance. Please distribute to your policy holders and managing general agencies should you wish to do so.

The guide was developed after consultation with organisations including Federation of Small Business and British Chamber of Commerce in conjunction with the Health and Safety Executive and the Department for Work and Pensions. It aims to provide clarity to businesses on what they do and don’t need to do when obtaining EL cover, and to tackle some of the health and safety myths that have arisen in recent years. It also explains the difference between employers’ liability and public liability insurance, the Health and Safety at Work Act 1974 and includes a simple to follow table addressing some common concerns around adherence to health and safety guidelines.

A press release, including a quote from Mark Hoban, Minister of Employment, as well as a copy of the guide, can be found on the ABI website

In terms of distribution to brokers and customers, EL insurers may wish to note that:

  • Insurers are free to add their own logo to the insert.
  • It is for individual insurers to define “SME”. This has purposefully not been agreed with the Government to ensure that insurers had flexibility so that their own systems of distribution could easily incorporate this change.
  • Distribution can take the form of electronic or hard copy means (and need not be both).
  • The Government are aware that insurers will need time to adjust their systems - the aim is for this document to be distributed to:
    • new policyholders from 1 October 2013; and
    • renewing policyholders on a rolling basis at the point of renewal after 1 October 2013 (i.e. if a policyholder renews their policy in June 2014, that is the point at which the insert should be provided to them).

For any further information, please contact Tony Ellwood on tony.ellwood@lmalloyds.com or 020 7327 8322.


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LMA Bulletin

Date: 25 September 2013

From: Technical Executive, Underwriting

Ref: LMA13-022-TE