Industry news
Employer liability crackdown urged
Posted Fri, 16 Jul
The Government is being urged to crack down on companies failing to purchase Employers' Liability insurance to protect staff.
The Association of Insurance and Risk Managers (Airmic) also claims some employers buy less than they are required to do.
Following the Cabinet Office's Review of Health and Safety and the Compensation Culture, Airmic claims the Employers' Liability (Compulsory Insurance) Act is seeing "woefully inadequate" efforts at implementation. It also criticises the lack of implementation of health and safety laws generally.
"Apart from the obvious moral and legal imperative to protect staff, it is unfair that [some] are placed at a competitive disadvantage because they observe the letter of the law. Firms that save money by taking shortcuts on employee safety are getting away with it because of inadequate enforcement," said spokesman Paul Hopkin.
The Employers' Liability (Compulsory Insurance) Act 1969 generally requires employers to insure their liability to their employees for personal injury, disease or death sustained in the course of their employment in Britain. There is a penalty of up to £2,500 per day that an employer does not have cover.
Employers are required by law to insure for at least £5 million. The Association of British Insurers (ABI) claims most policies offer £10m minimum cover in practice.
Copyright © Press Association 2010
Airmic