Liability insurance by its very character allows for the existence of no-win no-fee, accident solicitors, ambulance chasers, conditional fee arrangements and injury lawyers for you, who the UK Government and Media believe are responsible for the emotional rise in personal injury claims in the UK in the last ten years.
The costs of business insurance have rocketed in response to liability claims, that some premiums quoted are becoming so excessively high in certain trade sectors where liability risks are heavy, as to reduce new entrants to the market.
The UK Government concerned by the additional costs to business and the Economy, commissioned the Jackson Report which has heavily criticised the current claims compensation culture sweeping Britain.
Lord Justice Jackson has made drastic suggestions for controlling the amount of claims that can be made against liability insurance polices and the costs that can be awarded against a business held liable.
Many of the current practices such as the claims procedure, soliciting for claimants and cold calling via text, are likely to be outlawed.
There has indeed been a large rise in the amount of claims particularly against commercial insurance policies.
Claims against tradesman and small companies public liability are standard in the UK small claims courts.
The worryingly large and growing amount of claims though, have come against the employers liability section of a company’s business insurance policy. From the companies own staff who allege to have suffered material loss or damage, or from past employees who allege personal injury which has emerged after their employment was terminated.
An example of the later has been the current saga costing billions in legal fees, of asbestosis and mesothelioma claims, some dating back to employment the 1950’s.
Accident at work claims, industrial disease claims, personal injury at work claims, employer negligence claims, are all examples of those covered under the employers liability section of a commercial policy, that are considered bread and butter targets for those companies that act as introducers or pursue spurious claims on a conditional fee arrangement basis.
It is because of the likelihood of being sued and to protect the health and safety of workers that the Government introduced a statutory requirement under the Act that all businesses who use any persons on any basis for any period of time, must have a minimum of £10,000,000 employers liability cover in force.
Employers liability insurance whilst providing protection for both the workforce and the business in resolving financial matters that would otherwise cripple a small business, should not be regarded as a replace adhering to the Health and Safety rules and regulations that apply to whichever trade the cover has been purchased for.
Indeed most commercial insurance policies will insist as part of the terms and conditions of the policy contract that these measures be in place.