MPs met executives from the ABI and CBI yesterday to discuss ways of improving the amount of employers' liability insurance cover available to companies.
The meeting took place against a backdrop of a year where many businesses found it difficult to get insurance cover because of rising premiums.
The ABI told a dozen MPs that the government needed to review the legal system, where rising personal injury payouts were pushing up insurance premiums.
A recent study by Axa estimated that more than 210,000 small and medium-sized businesses are operating illegally without employers' liability insurance, leaving nearly 1.8m employees without cover.
