Why are Employer Reference Numbers important?

The Financial Conduct Authority imposed a compulsory requirement, meaning that any business who purchases employers’ liability cover must make their insurer aware of their Employer Reference Number (ERN).

So what is it and where do I find it?

Our latest Air Underwriting Guide Explains:

ERN’s contain a three-digit tax reference number comprised of two parts; for example, 140/B12345.

ERN’s are commonly referred to as the “Employer PAYE Reference” number and can be found on mandatory documents including P45, P60, P11/D and on most pay slips.

Including the ERN number will make the process of searching the database for the employers’ liability insurers of employers far more efficient in the event of a claim. The Employers’ Liability Tracing Office (ELTO) was founded by the insurance industry in 2011 to give claimants easy access to their employers liability insurance data.

It’s important to keep in mind that employers’ liability claims can be made a long time after the employee has left the company. An example of this would be asbestos related illnesses occurring years after the initial exposure to the material.

When completing a quotation on our website, it’s vital our brokers ensure they’re requesting the ERN confirmation from their clients and entering it into the box entitled “Employer / PAYE Reference Number?”. We would always expect this to be done prior to any quotation incepting.

Questions? Contact us.