Many companies do not realise that they are exempt ...
The only statutory (“stat”) covers are in respect of Employer’s Liability (EL) and Motor Third Party (Motor TP) (with some rare additions, eg Aviation).
Employer’s Liability (Employers Liability Compulsory Insurance Act [ELCI] 1969:
EL Exemptions broadly fall into 3 categories (Section 3, ELCI)
Motor Third Party (Road Traffic Act 1969 [RTA])
Motor Exemptions broadly fall into similar categories (S144, RTA)
“All Local Authorities/Police/Fire & Rescue/HealthService authorities” e.g:
Vehicles owned by: council of a county or county district in England and Wales or Scotland, the Common Council of the City of London, the council of a London borough, Fire & Rescue authorities, London Fire &Emergency Planning Authority, London Fire Commissioner
A local policing body or a police authority at a time when it is being driven under the owner’s control, or to a vehicle at a time when it is being driven for police purposes by or under the direction of a constable, a member of a police and crime commissioner’s staff, by a member of the staff of the Mayor’s Office for Policing and Crime
Ambulances owned by an NHS trust, vehicles made available by the SoS to any person, body or local authority in pursuance of the NHS Act 2006
“Other miscellaneous public bodies” e.g:
Vehicles on journeys for salvage purposes pursuant to Part IX of the Merchant Shipping Act 1995
Vehicles owned by the Care Quality Commission, at a time when the vehicle is being driven under the owner’s control
If you are exempt?
- You do not need to buy the relevant insurance cover at all (EL or Motor)
- If you do buy insurance, you won’t be covered by any compensation scheme (eg the FSCS)
- If you really do want insurance, “off-the-shelf” (ELCI/RTA compliant) policies are not appropriate for you
- Insurance is designed to protect individuals and private companies (and their employees etc) as they may not have enough to compensate claimants or they may go bankrupt first.
- It is not designed for the public sector, as they are partially (or totally) funded (or controlled) by central government, and hence “exempt”!