July 15, 2010
Employers who fail to secure insurance cover for staff injuries or deaths in the workplace should receive increased government punishment, a leading insurance group has urged.
Under current law, the Employers' Liability (Compulsory Insurance) Act 1969 requires employers to insure their liability to their employees for personal injury, disease or death sustained in the course of their employment with a given company.
Employers are legally required to insure themselves for at least £5m, while there is currently a penalty of up to £2,500 per day that the employer does not have insurance.
In 2008, the Employer’s Liability Act was amended to allow employers to display liability insurance certificates online, or via duplicates in the workplace, removing the need for hard copies to be readily displayed.
But the Association of Insurance and Risk Managers (Airmic) has told the government that penalties for breaching the 1969 Act should be ramped up in order to change negligent employers’ attitudes.
“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,” said Airmic Technical Director Paul Hopkin.
“Firms that save money by taking shortcuts on employee safety are getting away with it because of inadequate enforcement.”
Airmic’s demands follow the Cabinet Office’s Review of Health and Safety in Britain. Describing the current penalty and enforcement system as “woefully inadequate”, Airmic has also criticised employers’ lack of health and safety awareness.
Staff injuries are inevitable even in the most risk assessed of workplaces. Therefore, ensuring your liability insurance is up-to-date and conforms to government guidelinesis essential.
To avoid expensive payouts or government action, seek advice on your company’s liability with insurance experts before opening your doors to the business world.
