ELTO Frequently Asked Questions for Coverholders
What is ELTO?
The Employers’ Liability Tracing Office (ELTO) is an independent, not-for-profit company that helps those who have suffered injury or disease in the workplace to identify the relevant insurer. It was set up to provide claimants and their representatives with quick and easy access to a database of employers' liability policies through an online inquiry facility.
What is the regulatory requirement to provide Employers’ Liability data to ELTO?
The Financial Conduct Authority (FCA) requires all employers’ liability (EL) insurers in the UK to produce an employers’ liability register and to make effective searches for historic policies. We meet these regulatory obligations through our membership of the ELTO.
What is the Employers’ Liability Database (ELD)?
The ELD is the national database of employers’ liability policies maintained by ELTO. Potential claimants can search this database on the ELTO website.
What do I need to do?
Your contract with XL Catlin requires you to supply the relevant policyholder details to us on a monthly basis. The ELTO clause is shown in your binding authority document (see below). This specifies the information you need to send us and how often.
You also need to record and maintain all historic, current and future policies for a period of 60 YEARS in a form that facilitates ready searches (i.e., by name of employer and/or policyholder). Such records may be held electronically.
What information do I need to provide?
The following information is required.–
–Employers’ name and address (including any subsidiaries)
–Employer Reference Number (ERN)
What about mid-term adjustments?
You must provide any mid-term adjustments to the above information as if it is a new or renewal policy. This means you must resubmit the details as set out in the Employers’ Liability Tracing Office clause shown below.
This applies to all policies with a cover date starting on or after April 1, 2011.
What is the Employer Reference Number (ERN)?
Each employer has a unique ERN, which is its reference number for income tax and national insurance contributions. Employees can the ERN to search the register.
The ERN is made up of two elements:
–The HMRC Office number: a three-digit code followed by a slash (/). It’s the HM Revenue & Customs Office reference for the business
–The employer PAYE reference: a seven-character code made up of two letters followed by five digits
You must provide both elements.
Please note that the second element is sometimes wrongly called the ERN. The ERN is actually both elements together.
–HMRC Office number: 123/
–Employer PAYE reference: AB12345
–ERN: 123/AB12345 (This is different from the Accounts Office reference, which would be 123PA00012345.)
Please note that each time a business runs payroll, it is required to make a direct payment to HMRC in relation to PAYE. The login process for this facility, which is managed by HMRC, includes inputting the ERN.
Where can my clients find the ERN?
The ERN can be found on documents such as:
–The Employer Payment Booklet
–Any P45, P60 or P11/D
Are there any ERN exemptions?
Almost every employer with PAYE employees has an ERN. The only exceptions are:
–Employers whose employees all are under the lower earnings limit for tax, have no other jobs and receive no employee or state benefits
–Businesses that are registered in the Isle of Man or the Channel Islands and so have no UK tax presence
Otherwise, an ERN is allocated to all UK businesses employing at least one person.
Can an employer have more than one ERN?
Some employers may have more than one ERN if they operate separate PAYE schemes for different business locations, or for expats or company directors. You must provide all relevant ERNs for all employers covered on any relevant policy.
Where can I find more information?