ERN just another TLA?
19th December 2012
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What is ERN?

Most people will be finding out shortly if they haven't alreading that insurance providers will be asking business owners who require Employers' Liability for their Employers' Reference Number or ERN. This is the PAYE reference number allocated by HMRC. The easiest way to find this is to contact your accountant or whomever deals with your payroll.


The reason why insurers are doing this is to create a database of those who are insuring for Employers' Liability and seeing whether this tallies with HMRC's records as to companies that pay employees. The aim is to reduce the number of companies that break the law by not taking out the cover. This will make it easier to trace the companies in the same way that the Motor Insurer Database (MID) has reduced the number of uninsured drivers on the road. 

Employers' Liability is a statutory cover similar to motor insurance. Therefore tracing companies that do not take out the cover is a high priority. 

What if I choose not to insure?

What's the worst that could happen? A fine of up to £2,500 PER DAY can be issued where there is no evidence that the cover was in place. To make matters worse this CAN be back dated. 

Do you need Employers' Liability?

There are some exceptions but the general rule is any company that employs somebody or even a limited company with more than one director. If you are in any doubt please feel free to contact us on 0844 573 2850.

About the Author

Steve R

Member since: 30th January 2012

Think Insurance is an independent insurance intermediary with over 30 years industry experience. This means as a client we can offer you the best impartial help and advice. We are 100% customer service...

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