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FSB hits out over employers' liability
Page 14
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• by Jennifer Sal
The Federation of Small Businesses (FSB) has slammed the government for its failure to address the growing problem of rocketing employers' liability insurance premiums.
While the MB welcomed some proposals in last week's Department for Work and Pensions reports into the sector—such as insurers having to give companies three weeks' notice when cover is up for renewal and look at the safety records of individual businesses—it says it is disappointed at the government's lack of immediate help for small busi
nesses. The average increase in employers' liability premium was 50% lastyear.
FSB national chairman John Emmins says: "The reports refuse to accept that the market has failed. The government raises 12bn a year in Insurance premiums tax. This is an obvious revenue stream that could easily be used to provide short-term assistance."
A number of CM readers have been ha hard by the increases. JK Sturge of Newcastle-under-Lyme blamed the rocketing cost of as public and employers liability insurance for its closure; its premiums
jumped from 117,000 to 142,000 in a year, even though its fleet was cut from 12 to 10 vehicles (CM12-18 Dec 2002).
West Thurrock-based tanker firm Suckling Transport says that while its employers' liability insurance rose 40% in 2002, it's premiums have remained static this year. Managing director Peter Lamer says that's down to the company introducing a number of safety initiatives, which have reduced accidents and therefore improved its claims record.
Chris North, from RHA Insurance Services, agrees that obtaining employers' liability and public liability insurance is becoming a worrying problem. "We have had a number of members whose premiums have soared." However, he adds that closely examining health and safety procedures can help reduce claims.
• What do you think? Should the government have done more to help businesses? is its report a
cop-art? f jertrifenball* GOAlit, call US on 020 8652 3668 or fax us on 020 8652 8971