The Association of British Insurers has warned that employers' liability insurance premiums could rise by around 7%.
They warned that Department of Health proposals to recover NHS costs in personal injury cases could result in premium hikes.
Head of ABI General Insurance John Parker said: "While we recognise that the NHS needs proper funding, this is not a good time to be adding further to the cost of insurance. Employers' liability insurance is already under considerable strain.
"The insurance industry is working hard to raise standards of health and safety and to keep the cost of insurance affordable. This further change will add a considerable burden for policyholders."
