In our latest blog we look at an introduction to what is ELTO and what it means for businesses, insurers and claimants.
What is ELTO?
ELTO stands for The Employers’ Liability Tracing Office. It is an independent body formed by the insurance industry and funded by a levy.
The ELTO service aims to make it easier to search for employers’ liability (EL) insurance policies. The service does so by holding information about employers’ liability insurance policies in a central database – the Employers Liability Database (ELD). The ELTO service covers new and renewed employers’ liability policies from April 2011.
Insurers who underwrite employers’ liability insurance policies are invited to join the ELTO as members. It is thought that 99% of the EL insurance market are signed up as members.
What is the purpose of the Employers’ Liability Tracing Office and how does it work?
The purpose of the Employers’ Liability Tracing Office as set out on the ELTO website is:
‘The ELTO service aims to help those who have suffered injury or disease in the workplace identify the relevant EL insurer quickly and efficiently.’
If an individual is suffering from a disease/injury caused at work the ELTO service will help the individual find the insurer of their former employer. This is particularly relevant if the disease or injury has only become apparent many years after working for the employer. Finding the right insurer will then allow the individual to progress with a potential claim.
Claimants and their representatives are able to access the database (ELD) through an online enquiry form.
The ELTO provides this tracing service. It is then up to the claimant to work with the appropriate insurer with regards to their claim.
What does ELTO mean for business who take out Employers’ liability insurance?
In order to be able to identify individual employers, the ELTO requires a unique identifier.
So, if you are a business who takes out employers’ liability insurance your insurer, or broker, will most likely request your Employer Reference Number (ERN). This is provided by HMRC when you register as a business.
What does ELTO mean for Insurers?
Insurers who have liabilities for UK employers’ liability policies are compelled by FCA regulations to publish information about their employers’ liability insurance policies. And to make these records searchable.
The ELTO website states that membership to the ELTO enables insurers to fulfil this requirement.
Insurers who are members of the ELTO are then required to submit information regarding their policies to the ELTO within specified timescales and in a certain format.
What does ELTO mean for claimants?
As a claimant wanting to make an employers’ liability insurance claim for an injury or disease caused by work the ELTO service aims to make this process easier. Particularly if you have not worked for the employer for a number of years or are no longer able to get in touch with an employer to find out insurer details.
By searching the ELD you should be able to find details of the relevant insurer. This will then allow you to pursue any relevant claims with the insurer.