Premium concern
|
Liability insurance protects your business from the costs arising from someone getting injured on your premises through no fault of their own. However, following the introduction of Injury Cost Recovery legislation, premiums are likely to rise. Tom Whitney reports
Under Injury Cost Recovery (ICR) legislation introduced in January 2007, the NHS can claim back treatment costs of up to £37,000 from a business, via its insurance, if an accident is the result of negligence on the part of the business. Employers' liability insurance and public liability insurance premiums are likely to rise as a result.
Employers' liability insurance is compulsory for firms with employees (unless they are unincorporated and only employ family members). If customers visit your premises, it is also a good idea to take out public liability insurance, which provides cover if a member of the public dies, is injured or becomes ill because of your business activities. Rising premiums "By taking out liability insurance you can protect your business from compensation claims and legal fees that arise when an accident is caused by your negligence," explains Steve Foulsham, technical services officer at the British Insurers Brokers' Association. "However, the new ICR legislation is likely to push premiums up," he continues. "Liability insurance premiums will rise between five and eight per cent in the next 12 to 18 months as a result," he cautions. Health and safety Small firms can affect the premium they pay by having good health and safety provisions. "Insurers will take account of responsible health and safety practices in their rates," argues David Robertson, Bibby Financial Services chief executive. "By taking simple preventative steps, small firms can reduce the chance of their insurance premiums going up, as well as minimising the risk of workplace injuries," he adds. If you have more than five employees, you should have a written health and safety policy. This should set out your general approach to safety, assign health and safety responsibilities and detail specific health and safety procedures or emergency instructions you have. You are legally obliged to carry out regular health and safety risk assessments of your premises. In case of an accident, you must also have suitable first aid provisions. You must report serious injuries, diseases and dangerous accidents to the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) Incident Contact Centre.
|