FSB warns of employers' liability insurance premium rises

The Federation of Small Businesses (FSB) has warned that employers’ liability insurance premiums could rise, following the introduction today of a new scheme that allows the NHS to recover the costs of treating patients that have been paid personal injury compensation.

The UK’s biggest business organisation has called on insurers to work with small businesses to keep insurance premiums down.

The FSB pointed out that small businesses employ over half of the private sector workforce in the UK and generate over half of UK GDP. Their prospects and those of the UK economy as a whole could be damaged if the introduction of these measures leads to the spiralling insurance costs of a few years ago.

Mary Boughton, FSB Health and Safety Chairman, said:

“We are not here to defend businesses whose negligence causes accidents in the workplace. But the vast majority of small businesses are conscientious employers and don’t deserve to be set back by higher insurance premiums."

“It was not long ago that surveys of the FSB membership showed that, through no fault of their own, 25% of small businesses found it difficult or impossible to secure any sort of Employers Liability Compulsory Insurance and insurers were not taking good health and safety records into account."

“Small businesses that can demonstrate a good health and safety record should be entitled to reduced premiums.”