Business Insolvency |
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'Essential for businesses' to get employer liability insurance
27/03/2008
The Institute of Risk Management (IRM) has said that it is "essential" for small businesses to get employer liability insurance.
Recent research by Hiscox discovered that nearly two thirds of smaller businesses have not done so - leaving them vulnerable to legal action from their own employees should accidents happen.
At a time when employment tribunals are becoming increasingly frequent - they rose in number by 15 per cent last year - 62 per cent of small business owners have not insured themselves against the threat of employee legal action.
IRM development manager Carolyn Williams believes that even people working on their own should consider whether they ever hire contractors that they could then be liable for without realising.
"They also need to be aware that it's better to make sure that accidents don't happen in the first place, because you get all these additional costs too," she commented.
When asked whether some small business owners might mistakenly not take out liability cover because they feel they have complete trust in their employees, Ms Williams said:: "I think that's a very dangerous approach."
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