Brian Cotter MP, Liberal Democrat spokesman on small business, has tabled a motion in the House of Commons calling on the government to take immediate action on the Employers' Liability (EL) crisis.
The motion calls for measures to limit the effect of the 'no-win, no-fee' claims companies on the cost of insurance.
Commenting on the Motion, Cotter said: "The DWP report has done little to improve the situation in which thousands of businesses find themselves. I have tabled this motion in order to press the Government to act sooner rather than later over this crucial issue.
"I would like to see a stronger link between risk and cost. At the moment there is no incentive for businesses to keep the workplace safe, as there is no financial reward for maintaining a high standard of safety. The Government must also take action to reduce legal costs.
"I also want to draw the Government's attention to the report carried out by Davis Langdon Consultancy on behalf of the DTI which revealed that premiums within the construction industry have already risen by as much as 500%.
"The cost of insurance is just going to carry on soaring until the Government takes the matter seriously."
