The government's review of employers liability compulsory insurance must be used by the industry for fundamental reform. That's according to the Health and Safety Commission's Bill Callaghan.
Employers¹ liability (EL) premiums must rise if the liability crisis is to be resolved, according to the Health & Safety Commission (HSC).
Speaking at the Iron Trades Annual Conference, HSC chairman Bill Callaghan said that market adjustment might restore stability in the short-term. But he said that in the long-term businesses needed to bear more of the cost of EL.
"At present the EL system does not promote better health and safety. The cost of health and safety failures needs to be recognised and borne by those who create them, i.e. employers."
Callaghan also said that a no fault system should be considered.
TUC senior policy officer Owen Tudor also said that the system needed to be changed so that small firms could feel they were getting something for something, rather than something for nothing.
"Small firms rarely claim on the their EL and use the insurance as catastrophe cover. Businesses need to be given more assistance with risk management and rehabilitation," he said.
