Business groups criticise Government reviews on insurance

The results of Government investigations into the employers’ liability insurance crisis have disappointed some business organisations.

The research, which was conducted by the Department for Work and Pensions and the Office of Fair Trading, revealed that insurance premiums rose by an average of 60% last year, but reported that there was ‘no evidence of a widespread lack of availability’ of cover.

Minister for Work, Nick Brown, has announced a Governmental ‘agenda for action’, which contains both long and short-term measures to help businesses.

However, small business groups have expressed their frustration at the apparent lack of any clear-cut action or immediate relief for firms.

John Emmins of the Federation of Small Businesses warned that businesses stand to suffer another sharp rise in premiums before the results of the Government’s ‘progress report’ is released in the autumn.

The measures were also criticised by the British Chambers of Commerce, which warned that ‘more consultation and report-writing is not going to keep these companies in business nor their employees in work’.