However, a number of people have been unable to trace their
employers' liability insurance policy and make a claim.
And having
employers' liability insurance does not exempt them from taking precautions to protect the health and safety of their workers.
Rachel Cotton, MORE TH>N business manager, said: "It is clear from our research that businesses are not deliberately choosing to flout the law or forfeit cover, but that there is a general lack of understanding around the
employers' liability legislation.
Small companies account for around 30pc of the
employers' liability insurance market in terms of premiums and around 70pc in terms of number, however, it is not cost effective for insurers to assess the health and safety practices followed by individual small employers.
This is not a workers' comp law but rather a liability act that permits
employers' liability suits.
From April next year, it will be compulsory for firms purchasing
Employers' Liability Insurance to supply their Employer Reference Number (ERN).
By law all employers have a duty to have
employers' liability insurance for their staff and they also have to have the up-to-date certificate on display in a place where you can see it.
An ELIB would plug the black holes in records of
employers' liability insurance, into which an estimated 5% to 10% of asbestos-related disease claims currently fall.
Of particular concern is the revelation that 40 per cent of small businesses in the West Midlands - 10 per cent higher than the national average - could face legal action as they were unaware that temporary workers and sub-contractors must be covered under statutory
Employers' Liability insurance.
More than 50,000 sole-traders are employing seasonal and part-time staff without adequate
Employers' Liability (EL) cover and could be fined, according to a new report.
John Parker, Head of General Insurance for the Association of British Insurers, said, ``We estimate that these proposals will increase
employers' liability insurance premiums by around 7pc.
