Employers’ liability insurance premiums set to rise
February 4, 2007
The cost of employers’ liability insurance premiums could increase by eight per cent following the introduction of Injury Cost Recovery (ICR) legislation, the British Insurance Brokers Association (BIBA) has warned.
Under ICR legislation, the National Heath Service (NHS) can claim back a maximum of £37,000 for treatment costs from a business, if an accident involving an employee or customer is a result of employer negligence.
"Employers’ liability insurance premiums will rise between five and eight per cent as a result," said BIBA technical services officer Steve Foulsham. "But it may be 12 to 18 months before we see this increase.
"Businesses that wish to minimise the impact of the regulations should review their health and safety procedures and work with their insurers towards a manageable solution," Foulsham added. "Insurers have made it clear that they are willing to work with the business community to keep premiums as low as possible, by reflecting responsible health and safety practices in their rates."
Federation of Small Businesses (FSB) health and safety chair Mary Boughton, said: "The vast majority of small businesses are conscientious employers and don’t deserve to be set back by higher insurance premiums.
"Insurers also need to give small firms due notification that their premiums are about to go up, so businesses can budget for the increase," she added.
Department of Health minister, Andy Burnham, defended the ICR legislation. "This policy will encourage employers to take steps to prevent employees being injured," he said.
"This scheme will not introduce any more extra regulations for businesses," he added. "It is unacceptable that taxpayers have to pay for the medical treatment of someone injured at work simply because employers fail to take adequate steps to protect their workforce."
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