To adequately face these exposures, an employer will need more than the workers' compensation and employer's liability insurance
Many companies still do not realise they are required by law to have employer's liability insurance
, and BSS disclosed there are many companies which face closure because they cannot get insurance.
He added that employer's liability insurance
was a ``particularly hazardous'' business for insurance companies.
Trade Partners UK and others can spend all the money in the world helping SMEs with limited resources trade internationally but their efforts are being significantly undermined by cancers within such as red tape, restrictive employment legislation, record levels of absenteeism and employer's liability insurance
West Midlands-based firms have complained that the soaring cost of employer's liability insurance
is putting their businesses at risk.
According to the research, 94pc of small and medium sized businesses are worried that employer's liability insurance premiums will rise again this year, raising fears that many small firms will be put out of business.
Bibby Factors Northeast sales director, Terry Brown said: "The prospect of further increases in employer's liability insurance premiums just doesn't bear thinking about.
Employer's liability insurance is compulsory and has been since 1972.
Many insurance companies no longer offer employer's liability insurance and those that do are only selling it as a package with other insurances.
Mike Williams, chief executive of the British Insurance Brokers' Association, said after key talks at the Treasury: 'If we're going to deal with the problem in the long term we have to think about the law which has been around in its present form for about 35 years and perhaps needs looking at.' The talks follow claims that soaring employer's liability insurance
premiums are threatening many small and medium businesses in 'high risk' sectors such as building, transport maintenance and mining.