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Firms operating without cover
Page 8
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• Around 25% of companies have had difficulties or been unable to get employers' liability insurance, and consequently 8% are trading illegally without cover, according to a report from the Federation of Small Businesses (FSB).
Its survey of 1,000 small business owners also reveals that one in five employers who have EL have been forced to cut staff or stop recruitment due to the soaring cost of premiums. In addition, 20% of businesses say they are facing another rise in premiums this year on top of last year's dramatic increases, and more than half of companies surveyed have seen a dent in their profits.
FSB national chairman John Emmins says: "Small firms are facing another round of huge premiums increases that will force some out of business. The ongoing crisis is having an adverse impact on employment prospects and firms are reducing investment in crucial areas such as staff training."
A spokeswoman for the ETA says that it is extremely concerned about the number of companies running without employers' liability insurance: "In its pre-budget submission, the ETA called on the government to scrap insurance premium tax on employers' liability, as this would go some way to offset premium rises."