The perceived employers' liability (EL) crisis should not be seen in isolation but as a symptom of a more serious threat, namely a "compensation culture" crisis, Lord Hunt will warn.
In a debate in the House of Lords, the senior partner of Beachcroft Wansbroughs will ask if there actually is an employers' liability crisis.
"Two reports, one by the Office of Fair Trading, the other by the Department of Work and Pensions, both concluded that, while there have been price rises, the evidence is of a market adjustment, rather than a market failure."
"Employers' liability should be viewed, not alone, but within the broad context of how we award damages and compensation to those who have been injured," Lord Hunt will say.
He will add: "While there has been rises in EL premium, which in some cases have been substantial, these must be set against the background of persistent underwriting losses of nearly £1bn in the last three years, double digit compensation inflation and a collapse in investment returns."
He will also point out that insurers now pay out £1.47 in claims and expenses for every £1 premium they receive.
Lord Hunt will suggest the introduction of a civil liability for those companies who fail to take out EL cover. "At present, the failure to take out appropriate EL cover is a criminal offence and incurs a fine of £2,500."
"But there is no corresponding civil duty, on either the company or its directors, with the result that an injured employee has no remedy against the directors, personally. This is an area that should be explored further."
